Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity registrant name | RESOLUTE FOREST PRODUCTS INC. | ||
Entity central index key | 1,393,066 | ||
Current fiscal year end date | --12-31 | ||
Entity filer category | Accelerated Filer | ||
Document type | 10-K | ||
Document period end date | Dec. 31, 2017 | ||
Document fiscal year focus | 2,017 | ||
Document fiscal period focus | FY | ||
Trading symbol | RFP | ||
Amendment flag | false | ||
Entity common stock, shares outstanding | 90,196,720 | ||
Entity well-known seasoned issuer | Yes | ||
Entity voluntary filers | No | ||
Entity current reporting status | Yes | ||
Entity public float | $ 259 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||||||||||
Sales | $ 898 | $ 885 | $ 858 | $ 872 | $ 889 | $ 888 | $ 891 | $ 877 | $ 3,513 | $ 3,545 | $ 3,645 |
Costs and expenses: | |||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 2,574 | 2,716 | 2,826 | ||||||||
Depreciation and amortization | 204 | 206 | 237 | ||||||||
Distribution costs | 442 | 440 | 460 | ||||||||
Selling, general and administrative expenses | 172 | 149 | 160 | ||||||||
Closure costs, impairment and other related charges | 87 | 62 | 181 | ||||||||
Net gain on disposition of assets | (15) | (2) | 0 | ||||||||
Operating income (loss) | 54 | 48 | (47) | (6) | (18) | 10 | (18) | 0 | 49 | (26) | (219) |
Interest expense | (49) | (38) | (41) | ||||||||
Other income (expense), net | 6 | 7 | 4 | ||||||||
Income (loss) before income taxes | 6 | (57) | (256) | ||||||||
Income tax benefit (provision) | (84) | (19) | 1 | ||||||||
Net income (loss) including noncontrolling interests | (78) | (76) | (255) | ||||||||
Net income attributable to noncontrolling interests | (6) | (5) | (2) | ||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | $ 13 | $ 24 | $ (74) | $ (47) | $ (45) | $ 14 | $ (42) | $ (8) | $ (84) | $ (81) | $ (257) |
Net loss per share attributable to Resolute Forest Products Inc. common shareholders: | |||||||||||
Basic (in dollars per share) | $ 0.14 | $ 0.27 | $ (0.82) | $ (0.52) | $ (0.50) | $ 0.16 | $ (0.47) | $ (0.09) | $ (0.93) | $ (0.90) | $ (2.78) |
Diluted (in dollars per share) | $ 0.14 | $ 0.26 | $ (0.82) | $ (0.52) | $ (0.50) | $ 0.15 | $ (0.47) | $ (0.09) | $ (0.93) | $ (0.90) | $ (2.78) |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | |||||||||||
Basic | 90.5 | 89.9 | 92.4 | ||||||||
Diluted | 90.5 | 89.9 | 92.4 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss including noncontrolling interests | $ (78) | $ (76) | $ (255) |
Unamortized prior service credits | |||
Change in unamortized prior service credits | (15) | (17) | (16) |
Income tax benefit | 0 | 0 | 6 |
Change in unamortized prior service credits, net of tax | (15) | (17) | (10) |
Unamortized actuarial losses | |||
Change in unamortized actuarial losses | (10) | (183) | 208 |
Income tax benefit (provision) | 3 | 31 | (63) |
Change in unamortized actuarial losses, net of tax | (7) | (152) | 145 |
Foreign currency translation | (3) | 1 | (4) |
Other comprehensive (loss) income, net of tax | (25) | (168) | 131 |
Comprehensive loss including noncontrolling interests | (103) | (244) | (124) |
Comprehensive income attributable to noncontrolling interests | (6) | (5) | (2) |
Comprehensive loss attributable to Resolute Forest Products Inc. | $ (109) | $ (249) | $ (126) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 6 | $ 35 |
Accounts receivable, net: | ||
Trade | 399 | 358 |
Other | 80 | 83 |
Inventories, net | 526 | 570 |
Other current assets | 33 | 35 |
Total current assets | 1,044 | 1,081 |
Fixed assets, net | 1,716 | 1,842 |
Amortizable intangible assets, net | 65 | 70 |
Goodwill | 81 | 81 |
Deferred income tax assets | 1,076 | 1,039 |
Other assets | 165 | 164 |
Total assets | 4,147 | 4,277 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 420 | 466 |
Current portion of long-term debt | 1 | 1 |
Total current liabilities | 421 | 467 |
Long-term debt, net of current portion | 788 | 761 |
Pension and other postretirement benefit obligations | 1,257 | 1,281 |
Deferred income tax liabilities | 13 | 2 |
Other liabilities | 68 | 55 |
Total liabilities | 2,547 | 2,566 |
Commitments and contingencies | ||
Resolute Forest Products Inc. shareholders’ equity: | ||
Common stock, $0.001 par value. 118.2 shares issued and 90.2 shares outstanding as of December 31, 2017; 117.8 shares issued and 89.8 shares outstanding as of December 31, 2016 | 0 | 0 |
Additional paid-in capital | 3,793 | 3,775 |
Deficit | (1,294) | (1,207) |
Accumulated other comprehensive loss | (780) | (755) |
Treasury stock at cost, 28.0 shares as of December 31, 2017 and 2016 | (120) | (120) |
Total Resolute Forest Products Inc. shareholders’ equity | 1,599 | 1,693 |
Noncontrolling interests | 1 | 18 |
Total equity | 1,600 | 1,711 |
Total liabilities and equity | $ 4,147 | $ 4,277 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 118.2 | 117.8 |
Common stock, shares outstanding | 90.2 | 89.8 |
Treasury stock, shares | 28 | 28 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Non-controlling Interests [Member] |
Beginning Balance at Dec. 31, 2014 | $ 2,117 | $ 0 | $ 3,754 | $ (869) | $ (718) | $ (61) | $ 11 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 11 | 11 | |||||
Net income (loss) | (255) | (257) | 2 | ||||
Purchases of treasury stock | (59) | (59) | |||||
Stock options exercised and stock unit awards vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income (loss), net of tax | 131 | 131 | 0 | ||||
Ending Balance at Dec. 31, 2015 | 1,945 | 0 | 3,765 | (1,126) | (587) | (120) | 13 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 10 | 10 | |||||
Net income (loss) | (76) | (81) | 5 | ||||
Stock options exercised and stock unit awards vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income (loss), net of tax | (168) | (168) | 0 | ||||
Ending Balance at Dec. 31, 2016 | 1,711 | 0 | 3,775 | (1,207) | (755) | (120) | 18 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 10 | 10 | |||||
Net income (loss) | (78) | (84) | 6 | ||||
Acquisition of noncontrolling interest | (15) | 8 | (23) | ||||
Cumulative-effect adjustment upon deferred tax charge elimination | (3) | (3) | |||||
Stock options exercised and stock unit awards vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income (loss), net of tax | (25) | (25) | 0 | ||||
Ending Balance at Dec. 31, 2017 | $ 1,600 | $ 0 | $ 3,793 | $ (1,294) | $ (780) | $ (120) | $ 1 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Equity (Parenthetical) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share repurchase program, shares, repurchased | 0 | 0 | 5.5 |
Common Stock [Member] | |||
Stock options exercised and stock unit awards vested, net of shares forfeited for employee withholding taxes | 0.4 | 0.3 | 0.2 |
Treasury Stock [Member] | |||
Share repurchase program, shares, repurchased | 5.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities: | ||||
Net loss including noncontrolling interests | $ (78) | $ (76) | $ (255) | |
Adjustments to reconcile net loss including noncontrolling interests to net cash provided by operating activities: | ||||
Share-based compensation | 15 | 11 | 12 | |
Depreciation and amortization | 204 | 206 | 237 | |
Closure costs, impairment and other related charges | 71 | 59 | 176 | |
Inventory write-downs related to closures | 24 | 7 | 2 | |
Deferred income taxes | 80 | 14 | 3 | |
Net pension contributions and other postretirement benefit payments | (114) | (125) | (62) | |
Net gain on disposition of assets | (15) | (2) | 0 | |
(Gain) loss on translation of foreign currency denominated deferred income taxes | (71) | (28) | 199 | |
Loss (gain) on translation of foreign currency denominated pension and other postretirement benefit obligations | 58 | 27 | (184) | |
Gain on disposition of equity method investment | [1] | 0 | (5) | 0 |
Net planned major maintenance amortization (payments) | 3 | (3) | (3) | |
Changes in working capital: | ||||
Accounts receivable | (37) | 26 | 87 | |
Inventories | 23 | (37) | 10 | |
Other current assets | 1 | 7 | (4) | |
Accounts payable and accrued liabilities | (17) | (3) | (85) | |
Other, net | 11 | 3 | 5 | |
Net cash provided by operating activities | 158 | 81 | 138 | |
Cash flows from investing activities: | ||||
Cash invested in fixed assets | (164) | (249) | (185) | |
Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired | 0 | 0 | (159) | |
Acquisition of a sawmill in Senneterre (Quebec) | 0 | (6) | 0 | |
Disposition of assets | 21 | 5 | 0 | |
Increase in countervailing duty cash deposits on supercalendered paper | (22) | (23) | (4) | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (26) | 0 | 0 | |
Increase in restricted cash, net | (3) | 0 | 0 | |
Decrease (increase) in deposit requirements for letters of credit, net | 2 | 0 | (4) | |
Net cash provided by (used in) investing activities | (192) | (273) | (352) | |
Cash flows from financing activities: | ||||
Net borrowings under revolving credit facilities | 19 | 125 | 0 | |
Acquisition of noncontrolling interest in Donohue Malbaie Inc. | (15) | 0 | 0 | |
Issuance of long-term debt | 0 | 46 | 0 | |
Payments of debt | (1) | (1) | 0 | |
Payments of financing and credit facility fees | 0 | (1) | (3) | |
Purchases of treasury stock | 0 | 0 | (59) | |
Net cash provided by (used in) financing activities | 3 | 169 | (62) | |
Effect of exchange rate changes on cash and cash equivalents | 2 | 0 | (3) | |
Net increase (decrease) in cash and cash equivalents | (29) | (23) | (279) | |
Cash and cash equivalents: | ||||
Beginning of year | 35 | 58 | 337 | |
End of year | 6 | 35 | 58 | |
Cash paid during the year for: | ||||
Interest | 47 | 40 | 40 | |
Income taxes | $ 7 | $ 3 | $ 3 | |
[1] | On February 1, 2016, we sold for total consideration of $5 million our interest in Produits Forestiers Petit-Paris Inc., an unconsolidated entity located in Saint-Ludger-de-Milot (Quebec), in which we had a 50% interest, resulting in a gain on disposition of $5 million. |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Capitalized interest paid | $ 1 | $ 7 | $ 5 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and basis of presentation | Note 1. Organization and Basis of Presentation Nature of operations Resolute Forest Products Inc. (with its subsidiaries and affiliates, either individually or collectively, unless otherwise indicated, referred to as “Resolute Forest Products,” “we,” “our,” “us,” “Parent” or the “Company”) is incorporated in Delaware. We are a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries. We own or operate some 40 manufacturing facilities, as well as power generation assets, in the United States and Canada. Financial statements We have prepared our consolidated financial statements and the accompanying notes (“Consolidated Financial Statements”) in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All amounts are expressed in U.S. dollars, unless otherwise indicated. Certain prior period amounts in our footnotes have been reclassified to conform to the 2017 presentation. Consolidation Our Consolidated Financial Statements include the accounts of Resolute Forest Products Inc. and its controlled subsidiaries. All transactions and balances between these companies have been eliminated. All consolidated subsidiaries are wholly-owned as of December 31, 2017 , with the exception of the following: Consolidated Subsidiary Resolute Forest Products Ownership Partner Partner Ownership Forest Products Mauricie L.P. 93.2% Coopérative Forestière du Haut Saint-Maurice 6.8% In 2017, we acquired the 49% equity interest held by The New York Times Company in Donohue Malbaie Inc. for a cash purchase price of $15 million . We already owned 51% of the shares of Donohue Malbaie Inc. This acquisition was accounted for as an equity transaction and resulted in an increase of $8 million to “Additional paid-in capital” in our Consolidated Balance Sheet. Equity method investments We account for our investments in affiliated companies where we have significant influence, but not control over their operations, using the equity method of accounting. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Use of estimates In preparing our Consolidated Financial Statements in accordance with U.S. GAAP, management is required to make accounting estimates based on assumptions, judgments, and projections of future results of operations and cash flows. These estimates and assumptions affect the reported amounts of revenues and expenses during the periods presented, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities as of the date of the financial statements. The most critical estimates relate to the assumptions underlying the benefit obligations of our pension and other postretirement benefit (“OPEB”) plans, the recoverability of deferred income tax assets, and the carrying values of our long-lived assets and goodwill. Estimates, assumptions, and judgments are based on a number of factors, including historical experience, recent events, existing conditions, internal budgets and forecasts, projections obtained from industry research firms, and other data that management believes are reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions. Cash and cash equivalents Cash and cash equivalents generally consist of direct obligations of the U.S. and Canadian governments and their agencies, demand deposits, and other short-term, highly liquid securities with a maturity of three months or less from the date of purchase. Accounts receivable Accounts receivable are recorded at cost, net of an allowance for doubtful accounts that is based on expected collectibility, and such carrying value approximates fair value. Inventories Inventories are stated at the lower of cost or net realizable value using the average cost method. Cost includes labor, materials and production overhead, which is based on the normal capacity of our production facilities. Unallocated overhead, including production overhead associated with abnormal production levels, is recognized in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations when incurred. Fixed assets Fixed assets acquired, including internal-use software, are stated at acquisition cost less accumulated depreciation and impairment. The cost of the fixed assets is reduced by any investment tax credits or government capital grants earned. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. We capitalize interest on borrowings during the construction period of major capital projects as part of the related asset and amortize the capitalized interest in “Depreciation and amortization” in our Consolidated Statements of Operations over the related asset’s remaining useful life. Planned major maintenance costs are recorded using the deferral method, whereby the costs of each planned major maintenance activity are capitalized to “Other current assets” or “Other assets” in our Consolidated Balance Sheets, and amortized to “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations on a straight-line basis over the estimated period until the next planned major maintenance activity. All other routine repair and maintenance costs are expensed as incurred. Environmental costs We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. These costs are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. Expenditures that extend the life of the related property are capitalized. We determine our liability on a site-by-site basis and record a liability at the time it is probable and can be reasonably estimated. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable. Amortizable intangible assets Amortizable intangible assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. Impairment of long-lived assets The unit of accounting for impairment testing for long-lived assets is its group, which includes fixed assets, net, amortizable intangible assets, net, and liabilities directly related to those assets (herein defined as “asset group”). For asset groups that are held and used, that group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other asset groups. For asset groups that are to be disposed of by sale or otherwise, that group represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value of an asset group may no longer be recoverable. The recoverability of an asset group that is held and used is tested by comparing the carrying value of the asset group to the sum of the estimated undiscounted future cash flows expected to be generated by that asset group. In estimating the undiscounted future cash flows, we use projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the asset group. If there are multiple plausible scenarios for the use and eventual disposition of an asset group, we assess the likelihood of each scenario occurring in order to determine a probability-weighted estimate of the undiscounted future cash flows. The principal assumptions include periods of operation, projections of product pricing, production levels and sales volumes, product costs, market supply and demand, foreign exchange rates, inflation, and projected capital spending. Changes in any of these assumptions could have a material effect on the estimated undiscounted future cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment loss is recognized in the amount that the asset group’s carrying value exceeds its fair value. The fair value of a long-lived asset group is determined in accordance with our accounting policy for fair value measurements, as discussed below. If it is determined that the carrying value of an asset group is recoverable, we review and adjust, as necessary, the estimated useful lives of the assets in the group. When an asset group meets the criteria for classification as an asset held for sale, an impairment charge is recognized, if necessary, based on the excess of the asset group’s carrying value over the expected net proceeds from the sale (the estimated fair value minus the estimated costs to sell). Asset groups to be disposed of other than by sale are classified as held and used until the asset group is disposed of or use of the asset group has ceased. Business combination We use the acquisition method in accounting for a business combination. Under this approach, identifiable assets acquired and liabilities assumed are recorded at their respective fair market values at the date of acquisition. Any amount of the purchase price paid that is in excess of the estimated fair values of net identifiable assets acquired is recorded in “Goodwill” in our Consolidated Balance Sheets. In determining the estimated fair values of identifiable assets acquired and liabilities assumed in a business combination, we use various recognized valuation methods such as present value modeling and referenced market values (where available). Valuations are performed by management or independent valuation specialists under management’s supervision, where appropriate. Transaction costs, as well as costs to integrate acquired companies, are expensed as incurred in our Consolidated Statements of Operations. Goodwill Goodwill is not amortized and is evaluated every year, or more frequently, whenever indicators of potential impairment exist. The impairment test of goodwill is performed at the reporting unit’s level. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount including goodwill. In performing the qualitative assessment, we identify the relevant drivers of fair value of a reporting unit and the relevant events and circumstances that may have an impact on those drivers of fair value. This process involves significant judgment and assumptions including the assessment of the results of the most recent fair value calculations, the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting us and the business, and making the assessment on whether each relevant factor will impact the impairment test positively or negatively, and the magnitude of any such impact. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then an impairment test is performed. We can also elect to bypass the qualitative assessment and proceed directly to the impairment test. The first step of an impairment test is to compare the fair value of a reporting unit to its carrying amount, including goodwill. Significant judgment is required to estimate the fair value of a reporting unit. Using the income method to determine the fair value of a reporting unit, we estimate the fair value of a reporting unit based on the present value of estimated future cash flows. The assumptions used in the model requires estimating future sales volumes, selling prices and costs, changes in working capital, investments in fixed assets, and the selection of the appropriate discount rate. The assumptions used are consistent with internal projections and operating plans. Unanticipated market and macroeconomic events and circumstances may occur and could affect the exactitude and validity of management assumptions and estimates. Sensitivities of these fair value estimates to changes in assumptions are also performed. In the event that the net carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized for the amount by which the reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit. Goodwill is assigned to the tissue segment for the purposes of impairment testing. Income taxes We use the asset and liability approach in accounting for income taxes. Under this approach, deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the carrying amounts in our Consolidated Financial Statements of existing assets and liabilities and their respective tax bases. This approach also requires the recording of deferred income tax assets related to operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates applicable when temporary differences and carryforwards are expected to be recovered or settled. We do not provide for the additional U.S. and foreign income taxes that would become payable upon remittance of undistributed earnings of foreign subsidiaries as we are evaluating the reinvestment of such earnings for the provision of the Tax Cuts and Jobs Act (“TCJA”). Valuation allowances are recognized to reduce deferred income tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results, and prudent and feasible tax planning strategies. Tax benefits related to uncertain tax positions are recorded when it is more likely than not, based on technical merits, that the position will be sustained upon examination by the relevant taxing authorities. The amount of tax benefit recognized may differ from the amount taken or expected to be taken on a tax return. These differences represent unrecognized tax benefits and are reviewed at each reporting period based on facts, circumstances and available evidence. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of the income tax expense. A policy election as to whether to recognize the newly enacted global intangible low-taxed income tax (“GILTI”) as a period cost or to recognize deferred taxes for its future effects will be made during the 12-month measurement period following the enactment of the TCJA, as further discussed in Note 15, “Income Taxes .” Pension and OPEB plans For our defined benefit plans, we recognize a liability or an asset for pension and OPEB obligations net of the fair value of plan assets. A liability is recognized for a plan’s under-funded status and an asset is recognized for a plan’s over-funded status. Changes in the funding status that have not been recognized in our net periodic benefit cost are reflected as an adjustment to our “ Accumulated other comprehensive loss ” in our Consolidated Balance Sheets. We recognize net periodic benefit cost or credit as employees render the services necessary to earn the pension and OPEB. Amounts we contribute to our defined contribution plans are expensed as incurred. Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date, and is based on any principal market for the specific asset or liability. We consider the risk of non-performance of the obligor, which in some cases reflects our own credit risk, in determining fair value. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” we categorize assets and liabilities measured at fair value (other than those measured at net asset value (“NAV”) per share, or its equivalent) into one of three different levels depending on the observability of the inputs employed in the measurement. This fair value hierarchy is as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2 - Valuations based on observable inputs, other than Level 1 prices, such as quoted interest or currency exchange rates. Level 3 - Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used in the determination of fair value of our assets and liabilities, when required, maximize the use of observable inputs and minimize the use of unobservable inputs. Share-based compensation We recognize the cost of our share-based compensation over the requisite service period using the straight-line attribution approach, based on the grant date fair value for equity-based awards, and based on the quoted market value at the end of each reporting period for liability-based awards. The requisite service period is reduced for those employees who are retirement eligible at the date of the grant or who will become retirement eligible during the vesting period and who will be entitled to continue vesting in their entire award upon retirement. For equity-based awards, the fair value of stock options is determined using a Black-Scholes option pricing formula, and the fair value of restricted stock units (“RSUs”), deferred stock units (“DSUs”) and performance stock units (“PSUs”) is determined based on the market price of a share of our common stock on the grant date. Liability-based awards, consisting of RSUs, DSUs, and PSUs, are initially measured based on the market price of a share of our common stock on the grant date and remeasured at the end of each reporting period, until settlement. We estimate forfeitures of stock incentive awards (as defined in Note 18, “Share-Based Compensation ”) and performance adjustments for our PSUs based on historical experience and recognize compensation cost only for those awards expected to vest. Estimated forfeitures and performance adjustments are updated to reflect new information or actual experience, as it becomes available. Revenue recognition Pulp, tissue, paper and wood products are delivered to our customers in the United States and Canada directly from our mills by either truck or rail. Pulp and paper products delivered to our international customers by ship are sold with international shipping terms. Revenue is recorded when risk of loss and title of the product passes to the customer. For sales with the terms free on board (“FOB”) shipping point, revenue is recorded when the product leaves the mill, whereas for sales transactions FOB destination, revenue is recorded when the product is delivered to the customer’s delivery site. Sales are reported net of allowances and rebates, and the following criteria must be met before they are recognized: persuasive evidence of an arrangement exists, delivery has occurred and we have no remaining obligations, prices are fixed or determinable, and collectibility is reasonably assured. Sales of our other products (green power produced from renewable sources, wood chips, and other wood related products) are recognized when the products are delivered and are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. Net loss per share We calculate basic net loss per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net loss by the basic weighted-average number of outstanding common shares. We calculate diluted net income per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net income by the basic weighted-average number of outstanding common shares, as adjusted for dilutive potential common shares using the treasury-stock method. Potentially dilutive common shares consist of outstanding stock options, RSUs, DSUs and PSUs. To calculate diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders, no adjustments to our basic weighted-average number of outstanding common shares are made, since the impact of potentially dilutive common shares would be antidilutive. Translation The functional currency of the majority of our operations is the U.S. dollar. Non-monetary assets and liabilities denominated in foreign currencies of these operations and the related income and expense items such as depreciation and amortization are remeasured into U.S. dollars using historical exchange rates. Remaining assets and liabilities are remeasured into U.S. dollars using the exchange rate as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using a daily or monthly average exchange rate for the period. Gains and losses from foreign currency transactions and from remeasurement of the balance sheet are reported in “ Other income, net ” in our Consolidated Statements of Operations. The functional currency of our other operations is their local currency. Assets and liabilities of these operations are translated into U.S. dollars at the exchange rate in effect as of the balance sheet date. Income and expense items are translated using a daily or monthly average exchange rate for the period. The resulting translation gains or losses are recognized as a component of equity in “ Accumulated other comprehensive loss .” Distribution costs Distribution costs represent costs associated with handling finished goods and shipping products to customers. Such costs are included in “Distribution costs” in our Consolidated Statements of Operations. New accounting pronouncements adopted as of December 31, 2017 In October 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory,” which eliminates the deferral of the tax effects of intra-entity asset transfers other than inventory until the transferred assets are sold to a third party or recovered through use. This update is effective on a modified retrospective approach for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. As early adoption is permitted as of the beginning of an annual period, we adopted this ASU on January 1, 2017. For additional information, see Note 15, “Income Taxes .” In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other” which eliminates the need to determine a hypothetical purchase price allocation comprised of the fair value of individual assets and liabilities of a reporting unit to measure any goodwill impairment. With this new standard, an impairment loss will be recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit. These updates are effective for fiscal years beginning after December 15, 2019. As early adoption is permitted, for annual and interim goodwill impairment tests after January 1, 2017, we adopted this ASU concurrently with our 2017 annual goodwill impairment test. The adoption of this accounting guidance did not materially impact our results of operations or financial position. Accounting pronouncements not yet adopted as of December 31, 2017 In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not have a material impact on our results of operations, financial position or cash flows. In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to recognize leases on the balance sheet while continuing to recognize expenses in the income statement in a manner similar to current accounting standards. For lessors, the new standard modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. We plan to adopt this standard on January 1, 2019. We are still evaluating the impact of this standard on our results of operations and financial position as implementation of this project is at the assessment stage. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts from Customers,” which provides a framework that replaces existing revenue recognition guidance in GAAP. In March 2016, April 2016, May 2016, December 2016, and November 2017, the FASB also issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Identifying Performance Obligations and Licensing,” ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” and ASU 2017-14, “Reporting Comprehensive Income, Revenue Recognition and Revenue from Contracts with Customers, (SEC Update),” respectively, which further affect the guidance of ASU 2014-09. These updates are effective for fiscal years beginning after December 15, 2017. We are finalizing our assessment of the impact of these standards on our Consolidated Financial Statements. Our current assessment is subject to change as we continue our analysis; however, we do not currently expect that the adoption of the new revenue standard will have a material impact on our revenues, results of operations or financial position. Our findings to-date are as follows: • The majority of our revenue arises from contracts with customers in which the sale of goods is generally expected to be the main performance obligation. Accordingly, we expect to recognize revenue for most of our revenue streams at a point in time when control of the asset is transferred to the customer, generally upon delivery of the goods. Based on our review of our contracts with customers, the timing and amount of revenue recognized under ASU 2014-09 is expected to be consistent with our current practice. • Certain of our contracts with customers provide incentive offerings, including special pricing agreements, and other volume-based incentives. Currently, we recognize revenue from the sale of goods measured at the fair value of the consideration received or receivable, net of provisions for customer incentives. If revenue cannot be reliably measured, revenue recognition is deferred until the uncertainty is resolved. Such contract provisions give rise to variable consideration under ASU 2014-09, and will be required to be estimated at contract inception. ASU 2014-09 requires the estimated variable consideration to be constrained to prevent the over-recognition of revenue. Based on our assessment of individual contracts, the amount of revenue recognized under ASU 2014-09, after consideration of the estimated variable consideration and related constraint, is expected to be consistent with our current practice. ASU 2014-09 also provides presentation and disclosure requirements, which are more detailed than under current GAAP. New requirements include disaggregation of revenue depicting how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors, information about the nature and timing of performance obligations, as well as significant judgments made and practical expedients used. The disaggregated revenue information required to be disclosed is expected to be similar to the information currently included in Note 20, “Segment Information .” We adopted these standards effective January 1, 2018, using the modified retrospective approach and are in the process of identifying and implementing the appropriate changes in processes and internal controls to support revenue recognition and disclosure under the new standard. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which introduces the current expected credit losses model in the estimation of credit losses on financial instruments. This update is effective retrospectively for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. We plan to adopt this ASU on January 1, 2020. We are still evaluating the impact of this accounting guidance on our results of operations and financial position as implementation of this project is at the assessment stage. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. All amendments to the guidance shall be adopted in the same period on a retrospective basis. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not materially impact the presentation of our cash flows. In November 2016, the FASB issued ASU 2016-18, “Restricted Cash,” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance will impact the presentation of our Consolidated Statements of Cash Flows. Restricted cash included in our Consolidated Balance Sheet was $43 million and $38 million as of December 31, 2017, and 2016, respectively. In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets,” which clarifies the scope of Subtopic 610-20, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets” and adds guidance for partial sales of nonfinancial assets. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not materially impact our results of operations, financial position or cash flows. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires employers that present a measure of operating income in their statements of earnings to disaggregate and present only the service cost component of net periodic benefit pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs arising during the period). The other components of the net periodic benefit cost and net periodic postretirement benefit cost are to be reported separately outside any subtotal of operating income. This update is effective retrospectively for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this ASU on January 1, 2018. As a result, estimated net periodic benefit credits of $55 million for the year ended December 31, 2018, will be reported outside of operating income in our results of operations. Net periodic benefit credits or costs, excluding the service cost component, were credits of $7 million for the year ended December 31, 2017, and costs of $8 million and $50 million for the years ended December 31, 2016 and 2015, respectively. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”, allowing an election to reclassify from accumulated other comprehensive income to retained earnings stranded income tax effects resulting from the TCJA. This update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years and should be applied either in the period of adoption or retrospectively to each period in which the effect of the TCJA is recognized. Early adoption is permitted, including adoption in any interim period, for which financial statements have not yet been issued. We are still evaluating the impact of this accounting guidance on our results of operations and financial position. |
Acquisition of Atlas Inc.
Acquisition of Atlas Inc. | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition of Atlas Paper Holdings Inc. | Note 3. Acquisition of Atlas Paper Holdings, Inc. On November 16, 2015, we acquired Atlas Paper Holdings, Inc. and its subsidiaries (“Atlas Tissue”), a manufacturer of a range of tissue products for the away-from-home and at-home markets, including virgin and recycled products, covering economy, value and premium grades and operating two tissue mills and a recycling facility in Florida. The acquisition of Atlas Tissue provided us with an immediate position in the North American consumer tissue market. The acquisition was strategic in nature as it allows us to integrate forward our U.S. market pulp assets. The fair value of the consideration transferred to acquire Atlas Tissue was $157 million , net of consideration to be recovered of $2 million recorded in “Accounts receivable, net” in our Consolidated Balance Sheet as of December 31, 2015. The following unaudited pro forma information for the year ended December 31, 2015 represents our results of operations as if the acquisition of Atlas Tissue had occurred on January 1, 2015. This pro forma information does not purport to be indicative of the results that would have occurred for the period presented or that may be expected in the future. (Unaudited, in millions except per share data) 2015 Sales $ 3,730 Net loss attributable to Resolute Forest Products Inc. (261 ) Basic net loss per share attributable to Resolute Forest Products Inc. (2.82 ) Diluted net loss per share attributable to Resolute Forest Products Inc. (2.82 ) The unaudited pro forma net loss attributable to Resolute Forest Products Inc. for the year ended December 31, 2015, excludes $16 million of Atlas Tissue’s transaction costs, loss on extinguishment of debt and other acquisition-related costs. It also excludes $3 million of our transaction costs associated with the acquisition, which were recorded in “Selling, general and administrative expenses” in our Consolidated Statements of Operations. |
Closure Costs, Impairment and O
Closure Costs, Impairment and Other Related Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Closure Costs, Impairment and Other Related Charges | Note 4. Closure Costs, Impairment and Other Related Charges Closure costs, impairment and other related charges for the year ended December 31, 2017 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Pension and OPEB Plan Curtailments and Other Severance and Other Costs Total Pulp mill in Coosa Pines (Alabama) (1) $ 55 $ — $ — $ — $ 55 Permanent closures Paper machine in Catawba (South Carolina) 5 — 2 4 11 Paper machines in Calhoun (Tennessee) — 6 3 2 11 Paper mill in Mokpo (South Korea) — — — 7 7 Other — — — 3 3 $ 60 $ 6 $ 5 $ 16 $ 87 (1) As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the year ended December 31, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. Closure costs, impairment and other related charges for the year ended December 31, 2016 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Severance and Other Costs Total Paper mill in Mokpo (1) $ 13 $ — $ — $ 13 Permanent closure Paper machine in Augusta (Georgia) — 32 4 36 Other 9 3 1 13 $ 22 $ 35 $ 5 $ 62 (1) Due to declining market conditions and rising recycled fiber prices, we recorded long-lived asset impairment charges of $13 million for the year ended December 31, 2016, to reduce the carrying value of the assets to fair value. Management estimated fair value using the market approach, by reference to transactions on comparable assets adjusted for additional risks and uncertainties associated with the deteriorating market environment, as well as increased competition in Asia. The fair value measurement is considered a level 3 measurement due to the significance of its unobservable inputs. In 2017, we announced the permanent closure of our Mokpo paper mill effective March 9, 2017. Closure costs, impairment and other related charges for the year ended December 31, 2015 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Severance and Other Costs Total Paper mill in Catawba (1) $ 176 $ — $ — $ 176 Permanent closures Paper mill in Iroquois Falls (Ontario) — — 3 3 Paper machine in Clermont (Quebec) — 2 — 2 $ 176 $ 2 $ 3 $ 181 (1) As a result of declining market conditions, we recorded long-lived asset impairment charges of $176 million for the year ended December 31, 2015, related to our Catawba paper assets, to reduce the carrying value of the assets to fair value. Management estimated the fair value using the income approach. Projected discounted cash flows utilized under the income approach included estimates regarding future revenues and expenses attributable to the Catawba paper activities, projected capital expenditures and a discount rate of 12% . This fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. |
Net Gain on Disposition of Asse
Net Gain on Disposition of Assets | 12 Months Ended |
Dec. 31, 2017 | |
Net Gain on Disposition of Assets [Abstract] | |
Net Gain on Disposition of Assets | Note 5. Net Gain on Disposition of Assets During 2017, we sold the assets of our permanently closed Mokpo paper mill, and various other assets for total consideration of $21 million , resulting in a net gain on disposition of assets of $15 million . |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Note 6. Other Income, Net Other income, net for the years ended December 31, 2017 , 2016 and 2015 , was comprised of the following: (In millions) 2017 2016 2015 Foreign exchange gain (loss) $ 9 $ (7 ) $ (4 ) Gain on disposition of equity method investment (1) — 5 — Miscellaneous (expense) income (3 ) 9 8 $ 6 $ 7 $ 4 (1) On February 1, 2016, we sold for total consideration of $5 million our interest in Produits Forestiers Petit-Paris Inc., an unconsolidated entity located in Saint-Ludger-de-Milot (Quebec), in which we had a 50% interest, resulting in a gain on disposition of $5 million . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 7. Accumulated Other Comprehensive Loss The change in our accumulated other comprehensive loss by component (net of tax) for the year ended December 31, 2017 , was as follows: (In millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2016 $ 67 $ (819 ) $ (3 ) $ (755 ) Other comprehensive income (loss) before reclassifications 1 (48 ) (3 ) (50 ) Amounts reclassified from accumulated other comprehensive loss (1) (16 ) 41 — 25 Net current period other comprehensive loss (15 ) (7 ) (3 ) (25 ) Balance as of December 31, 2017 $ 52 $ (826 ) $ (6 ) $ (780 ) (1) See the table below for details about these reclassifications. The reclassifications out of accumulated other comprehensive loss for the year ended December 31, 2017 , were comprised of the following: (In millions) Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Credits Amortization of prior service credits $ (15 ) Cost of sales, excluding depreciation, amortization and distribution costs (1) Curtailment gain (1 ) Closure costs, impairment and other related charges (1) — Income tax (provision) benefit $ (16 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 50 Cost of sales, excluding depreciation, amortization and distribution costs (1) Curtailment loss 1 Closure costs, impairment and other related charges (1) Settlement loss 1 Cost of sales, excluding depreciation, amortization and distribution costs (1) (11 ) Income tax (provision) benefit $ 41 Net of tax Total Reclassifications $ 25 Net of tax (1) These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 14, “Pension and Other Postretirement Benefit Plans .” |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Note 8. Net Loss Per Share The reconciliation of the basic and diluted net loss per share for the years ended December 31, 2017 , 2016 and 2015 , was as follows: (In millions) 2017 2016 2015 Numerator: Net loss attributable to Resolute Forest Products Inc. $ (84 ) $ (81 ) $ (257 ) Denominator: Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding 90.5 89.9 92.4 Dilutive impact of nonvested stock incentive awards — — — Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 90.5 89.9 92.4 Net loss per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ (0.93 ) $ (0.90 ) $ (2.78 ) Diluted $ (0.93 ) $ (0.90 ) $ (2.78 ) The weighted-average number of outstanding stock options and nonvested equity-classified RSUs, DSUs and PSUs (collectively, “stock unit awards”) that were excluded from the calculation of diluted net loss per share, as the impact would have been antidilutive, for the years ended December 31, 2017 , 2016 and 2015 , was as follows: (In millions) 2017 2016 2015 Stock options 1.4 1.4 1.5 Stock unit awards 4.1 2.6 1.4 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 9. Inventories, Net Inventories, net as of December 31, 2017 and 2016 , were comprised of the following: (In millions) 2017 2016 Raw materials $ 108 $ 126 Work in process 38 45 Finished goods 175 183 Mill stores and other supplies 205 216 $ 526 $ 570 In 2017, we recorded charges of $24 million for write-downs of mill stores and other supplies, primarily related to the permanent closure of two paper machines in Calhoun, a paper machine at our Catawba paper mill, and our Mokpo paper mill. In 2016, we recorded charges of $7 million for write-downs of mill stores and other supplies, primarily as a result of the permanent closure of a newsprint machine at our Augusta mill. These charges were included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. |
Fixed Assets, Net
Fixed Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Note 10. Fixed Assets, Net Fixed assets, net as of December 31, 2017 and 2016 , were comprised of the following: (Dollars in millions) Estimated Useful Lives (Years) 2017 2016 Land and land improvements 5 – 20 $ 56 $ 77 Buildings 2 – 40 298 257 Machinery and equipment (1) 5 – 25 2,544 2,264 Hydroelectric power plants 10 – 40 292 287 Timberlands and timberlands improvements 3 – 20 110 109 Construction in progress (1) 30 263 3,330 3,257 Less: Accumulated depreciation (1,614 ) (1,415 ) $ 1,716 $ 1,842 (1) Internal-use software included in fixed assets, net as of December 31, 2017 and 2016 , was as follows: (In millions) 2017 2016 Machinery and equipment $ 111 $ 83 Construction in progress — 13 111 96 Less: Accumulated depreciation (42 ) (27 ) $ 69 $ 69 Depreciation expense related to internal-use software is estimated to be $16 million for each of the next two years, $12 million from 2020 to 2021, and $8 million in 2022. |
Amortizable Intangible Assets,
Amortizable Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Amortizable Intangible Assets, Net | Note 11. Amortizable Intangible Assets, Net Amortizable intangible assets, net as of December 31, 2017 and 2016 , were comprised of the following: 2017 2016 (Dollars in millions) Estimated Useful Lives (Years) Gross Accumulated Net Gross Accumulated Net Water rights (1) 10 – 40 $ 19 $ 5 $ 14 $ 19 $ 4 $ 15 Energy contracts 15 – 25 52 14 38 52 11 41 Customer relationships 10 – 15 14 2 12 14 1 13 Other 1 — 1 1 — 1 $ 86 $ 21 $ 65 $ 86 $ 16 $ 70 (1) In order to operate our hydroelectric generation and transmission network, we draw water from various rivers in Quebec. For some of our facilities, the use of such government-owned waters is governed by water power leases or agreements with the province of Quebec, which set out the terms, conditions, and fees (as applicable). Terms of these agreements typically range from 10 to 25 years and are generally renewable, under certain conditions. In some cases, the agreements are contingent on the continued operation of the related paper mills and a minimum level of capital spending in the region. For our other facilities, the right to generate hydroelectricity stems from our ownership of the riverbed on which these facilities are located. Amortization expense related to amortizable intangible assets was $5 million, $4 million and $3 million, for the years ended December 31, 2017, 2016 and 2015, respectively. Amortization expense related to amortizable intangible assets is estimated to be $5 million for each of the next four years and $4 million in 2022. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 12. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of December 31, 2017 and 2016 , were comprised of the following: (In millions) 2017 2016 Trade accounts payable $ 306 $ 346 Payroll, bonuses and severance payable 55 51 Accrued interest 5 5 Pension and other postretirement benefit obligations 18 17 Book overdrafts — 13 Income and other taxes payable 10 7 Environmental liabilities 2 5 Other 24 22 $ 420 $ 466 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 13. Long-Term Debt Overview Long-term debt, including current portion, as of December 31, 2017 and 2016 , was comprised of the following: (In millions) 2017 2016 5.875% senior notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (5 ) (6 ) Unamortized discount (3 ) (4 ) Total senior notes due 2023 592 590 Term loan due 2025 46 46 Borrowings under revolving credit facilities 144 125 Capital lease obligation 7 1 Total debt 789 762 Less: Current portion of long-term debt (1 ) (1 ) Long-term debt, net of current portion $ 788 $ 761 Debt instruments 2023 Notes We issued $600 million in aggregate principal amount of 5.875% senior notes due 2023 (the “2023 Notes”) on May 8, 2013, pursuant to an indenture as of that date (the “indenture”). Upon their issuance, the notes were recorded at their fair value of $594 million , which reflected a discount of $6 million that is being amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the notes, resulting in an effective interest rate of 6% . Interest on the notes is payable semi-annually on May 15 and November 15, beginning November 15, 2013, until their maturity date of May 15, 2023 . In connection with the issuance of the notes, we incurred financing costs of approximately $9 million , which were deferred and recorded as a reduction of the notes. These deferred financing costs are being amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the notes. On May 27, 2014, the 2023 Notes and related guarantees were registered under the Securities Act of 1933 (as amended, the “Securities Act”). The 2023 Notes are guaranteed by all of our existing and subsequently acquired or organized direct or indirect wholly-owned U.S. subsidiaries that guarantee the ABL Credit Facility (as defined and discussed below). The notes are unsecured and effectively junior to indebtedness under both the ABL Credit Facility and the Senior Secured Credit Facility (as defined and discussed below), to the extent of the value of the collateral that secures these credit facilities and to future secured indebtedness. In addition, the notes are structurally subordinated to all existing and future liabilities of our subsidiaries that do not guarantee the notes. The terms of the indenture impose certain restrictions, subject to a number of exceptions and qualifications, including limits on our ability to: incur, assume or guarantee additional indebtedness; issue redeemable stock and preferred stock; pay dividends or make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase certain debt; make loans and investments; incur liens; issue dividends, make loans or transfer assets from our subsidiaries; sell or otherwise dispose of assets, including capital stock of subsidiaries; consolidate or merge with or into, or sell substantially all of our assets to, another person; enter into transactions with affiliates; and enter into new lines of business. In the event of a change of control, each holder will have the right to require us to repurchase all or any part of that holder’s notes at a purchase price in cash equal to 101% of the aggregate principal amount of the notes plus any accrued and unpaid interest. If we sell certain of our assets and do not use the proceeds to pay down certain indebtedness, purchase additional assets or make capital expenditures, each as specified in the indenture, we must offer to purchase the notes at a redemption price of 100% of the principal amount thereof plus accrued and unpaid interest with the net cash proceeds from the asset sale. The 2023 Notes are redeemable, in whole or in part, since May 15, 2017, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: Year (beginning May 15) Redemption Price 2017 104.406% 2018 102.938% 2019 101.469% 2020 and thereafter 100.000% The fair value of the 2023 Notes was $622 million and $543 million as of December 31, 2017 and 2016 , respectively, and was determined by reference to over-the-counter prices (Level 1). Senior Secured Credit Facility On September 7, 2016, we entered into a senior secured credit facility (the “Senior Secured Credit Facility”) for up to $185 million . The Senior Secured Credit Facility provides a term loan of $46 million with a maturity date of September 7, 2025 (“Term Loan”), a revolving credit facility of up to $139 million with a maturity date of September 7, 2022 (“Revolving Credit Facility”), and also provides an uncommitted option to increase the Senior Secured Credit Facility by up to $175 million , subject to certain terms and conditions. The obligations under the Senior Secured Credit Facility are guaranteed by certain material U.S. subsidiaries of the Company and are secured by a first priority mortgage on the real property of our Calhoun facility and a first priority security interest on the fixtures and equipment located therein, and related assets. Interest rates under the Senior Secured Credit Facility are based, at the Company’s election, on either a floating rate based on the London Interbank Offered Rate (“LIBOR”), or a base rate, in each case plus a spread over the index. The base rate is the highest of (i) the prime rate; (ii) the federal funds effective rate plus 0.5% ; and (iii) the one-month LIBOR plus 1% . The applicable spread over the index fluctuates quarterly based upon the Company’s capitalization ratio, which is defined as the ratio of the Company’s funded indebtedness to the sum of the Company’s funded indebtedness and its net worth. For the Term Loan, the applicable spread ranges from 0.875% to 1.5% for base rate loans, and from 1.875% to 2.5% for LIBOR loans. For loans under the Revolving Credit Facility, the applicable spread ranges from 0.5% to 1.125% for base rate loans, and from 1.5% to 2.125% for LIBOR loans. The Senior Secured Credit Facility was issued by lenders within the farm credit system and is eligible for patronage refunds. Patronage refunds are distributions of profits from lenders in the farm credit system, which are cooperatives that are required to distribute profits to their members. Patronage distributions, which are made in either cash or stock, are received in the year after they were earned. Future refunds are dependent on future farm credit lender profits, made at the discretion of each farm credit lender. In addition to paying interest on outstanding principal under the Senior Secured Credit Facility, we are required to pay a fee in respect of unutilized commitments under the Revolving Credit Facility equal to 0.325% per annum when average daily utilization under the Revolving Credit Facility for the prior fiscal quarter is less than or equal to 35% of the total revolving commitments, and 0.275% per annum when average daily utilization under the Revolving Credit Facility for the prior fiscal quarter is greater than 35% of the total revolving commitments. Base rate loans under the Senior Secured Credit Facility may be repaid from time to time at our discretion without premium or penalty. LIBOR loans may be repaid from time to time at our discretion, subject to breakage costs, if any. Amounts repaid on the Term Loan may not be subsequently re-borrowed. Principal amounts under the Revolving Credit Facility may be drawn, repaid, and redrawn until September 6, 2022. Pursuant to the Senior Secured Credit Facility, we are also required to maintain a capitalization ratio not greater than 45% at all times, available liquidity of not less than $100 million , and a collateral coverage ratio of not less than 1.8 to 1.0 (each as defined in the Senior Secured Credit Facility). In addition, the Senior Secured Credit Facility contains certain covenants applicable to the Company and its subsidiaries, including, among others: (i) requirements to deliver financial statements, other reports and notices; (ii) restrictions on the existence or incurrence and repayment of indebtedness; (iii) restrictions on the existence or incurrence of liens; (iv) restrictions on the Company and certain of its subsidiaries making certain restricted payments; (v) restrictions on making certain investments; (vi) restrictions on certain mergers, consolidations, and asset dispositions; (vii) restrictions on transactions with affiliates; and (viii) restrictions on modifications to material indebtedness. The Senior Secured Credit Facility includes customary representations and warranties, and, subject to customary grace periods and notice requirements, also contains certain customary events of default. As of December 31, 2017 , we had $56 million of availability under the Revolving Credit Facility, net of $83 million of borrowings. The fair values of the Term Loan and Revolving Credit Facility approximated their carrying values as of December 31, 2017 , as the variable interest rates reflect current interest rates for financial instruments with similar characteristics and maturities (Level 2). ABL Credit Facility On May 22, 2015, we entered into a five -year credit agreement for a senior secured asset-based revolving credit facility (the “ABL Credit Facility”), with an aggregate lender commitment of up to $600 million at any time outstanding, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves. The ABL Credit Facility will mature on May 22, 2020. The aggregate lender commitment under the facility includes a $60 million swingline sub-facility and a $200 million letter of credit sub-facility, and we may convert up to $50 million of the commitments under the facility to a first-in last-out facility (“FILO Facility”), subject to the consent of each converting lender. The ABL Credit Facility also provides for an uncommitted ability to increase the revolving credit facility by up to $500 million , subject to certain terms and conditions set forth in the agreement. Revolving loan (and letter of credit) availability under the credit agreement is subject to a borrowing base, which at any time is equal to the sum of (i) 85% of eligible accounts receivable (or 90% with respect to certain insured or letter of credit backed accounts or with accounts owed by investment grade obligors), plus (ii) the lesser of (A) 70% of the lesser of the cost or market value of eligible inventory or (B) 85% of the net orderly liquidation value of eligible inventory, plus (iii) 100% of the value of eligible cash and 95% of the value of permitted investments held in deposit accounts controlled solely by the administrative and collateral agent (the “agent”). The FILO Facility will be subject to a borrowing base, which at any time will be equal to (i) 5% of the eligible accounts receivable, plus (ii) 10% of the appraised net orderly value of the eligible inventory (subject to reduction to 5% over the term of the facility). Each borrowing base described above is subject to customary reserves and eligibility criteria, in the exercise of the agent’s reasonable discretion. The obligations under the credit agreement are guaranteed by certain material subsidiaries of the Company and are secured by first priority security interests in accounts receivable, inventory, and related assets. Loans under the credit agreement bear interest at a rate equal to the base rate, the LIBOR, or the Canadian banker’s acceptance (“BA”) rate, in each case plus an applicable margin. The applicable margin is between 0.00% and 0.75% with respect to base rate loans and between 1.00% and 1.75% with respect to LIBOR and Canadian BA loans, in each case based on availability under the credit facility and a leverage ratio. Loans outstanding under the FILO Facility bear interest at a rate that is 1.25% per annum higher than the interest rate payable on revolving loans not made under the FILO Facility. In addition to paying interest on outstanding principal under the ABL Credit Facility, we are required to pay a fee in respect of unutilized commitments under the ABL Credit Facility equal to 0.30% per annum when average daily utilization under the ABL Credit Facility for the prior fiscal quarter is less than 35% of the total revolving commitments, and 0.25% per annum when average daily utilization under the ABL Credit Facility for the prior fiscal quarter is greater than or equal to 35% of the total revolving commitments, as well as a fee in respect of outstanding letters of credit (equal to the applicable margin in respect of LIBOR and Canadian BA loans plus a fronting fee of 0.125% and certain administrative fees). Base rate loans under the ABL Credit Facility may be repaid from time to time at our discretion without premium or penalty. LIBOR and Canadian BA rate loans may be repaid from time to time at our discretion, subject to breakage costs, if any. However, no loans under the FILO Facility can be repaid unless all other loans under the credit agreement are repaid first. We are required to repay outstanding loans that exceed the maximum availability then in effect. The credit agreement contains customary covenants for asset-based credit agreements of this type, including, among other things: (i) requirements to deliver financial statements, other reports and notices; (ii) restrictions on the existence or incurrence and repayment of indebtedness by the Company and its subsidiaries; (iii) restrictions on the existence or incurrence of liens by the Company and its subsidiaries; (iv) restrictions on the Company and certain of its subsidiaries making certain restricted payments; (v) restrictions on the Company and certain of its subsidiaries making certain investments; (vi) restrictions on certain mergers, consolidations and asset dispositions; (vii) restrictions on transactions with affiliates; (viii) restrictions on amendments or modifications to the Canadian pension plans; (ix) restrictions on modifications to material indebtedness; and (x) a springing requirement for the Company to maintain a minimum consolidated fixed charge coverage ratio, as determined under the credit agreement, of 1.0 :1.0, anytime availability under the facility falls below the greater of $50 million or 10% of the maximum available borrowing amount for two consecutive business days. Subject to customary grace periods and notice requirements, the credit agreement also contains certain customary events of default. As of December 31, 2017 , we had $356 million of availability under the ABL Credit Facility, net of $61 million of borrowings and $40 million of ordinary course letters of credit outstanding. The fair value of the ABL Credit Facility approximated its carrying value as of December 31, 2017 , as the variable interest rates reflect current interest rates for financial instruments with similar characteristics and maturities (Level 2). Capital lease obligation In 2017, we amended the capital lease obligation for a warehouse. As amended, the capital lease obligation has a maturity date of December 1, 2027, and can be renewed for 20 years at our option. Minimum monthly payments are determined by an escalatory price clause. Assets pledged as collateral The carrying value of assets pledged as collateral for our total debt obligations was approximately $1.4 billion as of December 31, 2017 . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | Note 14. Pension and Other Postretirement Benefit Plans We have a number of defined contribution plans covering a portion of our U.S. and Canadian employees. Under the U.S. qualified defined contribution plan, employees are allowed to make contributions that we match. In addition, under the U.S. qualified defined contribution plan, most employees also receive an automatic company contribution, regardless of the employee’s contribution. The amount of the automatic company contribution, in most instances, is a percentage of the employee’s pay, determined based on age and years of service. The Canadian registered defined contribution plans provide for mandatory contributions by employees and by us, as well as opportunities for employees to make additional optional contributions and receive, in some cases, matching contributions on those optional amounts. Our expense for the defined contribution plans totaled $21 million in both 2017 and 2016 , and $20 million in 2015 . In addition to the previously described plans, we have multiple contributory and non-contributory defined benefit pension plans covering a portion of our U.S. and Canadian employees. Benefits are based on years of service and, depending on the plan, average compensation earned by employees either during their last years of employment or over their careers. Our plan assets and cash contributions to the plans have been sufficient to provide pension benefits to participants and meet the funding requirements of the Employee Retirement Income Security Act of 1974 in the United States as well as applicable legislation in Canada. We also sponsor a number of OPEB plans (e.g., health care and life insurance plans) for retirees at certain locations. Certain of the above plans are covered under collective bargaining agreements. The following tables include both our foreign (Canada) and domestic plans. The assumptions used to measure the obligations of each of our foreign and domestic plans are not significantly different from each other, with the exception of the health care trend rates, which are presented below. The changes in our pension and OPEB obligations and plan assets for the years ended December 31, 2017 and 2016 , and the funded status and reconciliation of amounts recognized in our Consolidated Balance Sheets as of December 31, 2017 and 2016 , were as follows: Pension Plans OPEB Plans (In millions) 2017 2016 2017 2016 Change in benefit obligations: Benefit obligations as of beginning of year $ 5,196 $ 5,068 $ 172 $ 174 Service cost 19 20 1 1 Interest cost 199 215 7 7 Actuarial loss (gain) 156 169 (7 ) — Participant contributions 7 8 2 2 Plan amendment — 1 (1 ) — Special termination benefits 5 — — — Curtailments 1 — 4 — Settlements (29 ) (28 ) — — Benefits paid (365 ) (380 ) (13 ) (15 ) Effect of foreign currency exchange rate changes 285 123 7 3 Benefit obligations as of end of year 5,474 5,196 172 172 Change in plan assets: Fair value of plan assets as of beginning of year 4,073 4,049 — — Actual return on plan assets 346 184 — — Employer contributions 111 141 11 13 Participant contributions 7 8 2 2 Settlements (29 ) (28 ) — — Benefits paid (365 ) (380 ) (13 ) (15 ) Effect of foreign currency exchange rate changes 234 99 — — Fair value of plan assets as of end of year 4,377 4,073 — — Funded status as of end of year $ (1,097 ) $ (1,123 ) $ (172 ) $ (172 ) Amounts recognized in our Consolidated Balance Sheets consisted of: Other assets $ 6 $ 3 $ — $ — Accounts payable and accrued liabilities (3 ) (3 ) (15 ) (14 ) Pension and OPEB obligations (1,100 ) (1,123 ) (157 ) (158 ) Net obligations recognized $ (1,097 ) $ (1,123 ) $ (172 ) $ (172 ) The total benefit obligations and the total fair value of plan assets for pension plans with benefit obligations in excess of plan assets were $5,213 million and $4,110 million , respectively, as of December 31, 2017 , and were $4,958 million and $3,832 million , respectively, as of December 31, 2016 . The total accumulated benefit obligations and the total fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $5,163 million and $4,110 million , respectively, as of December 31, 2017 , and were $4,903 million and $3,832 million , respectively, as of December 31, 2016 . The total accumulated benefit obligations for all pension plans were $5,421 million and $5,141 million as of December 31, 2017 and 2016 , respectively. Components of net periodic benefit cost The components of net periodic benefit cost relating to our pension and OPEB plans for the years ended December 31, 2017 , 2016 and 2015 , were as follows: Pension Plans OPEB Plans (In millions) 2017 2016 2015 2017 2016 2015 Service cost $ 19 $ 20 $ 23 $ 1 $ 1 $ 1 Interest cost 199 215 225 7 7 8 Expected return on plan assets (254 ) (247 ) (260 ) — — — Amortization of prior service credits (1 ) (1 ) (2 ) (14 ) (15 ) (14 ) Amortization of actuarial losses (gains) 55 54 84 (5 ) (5 ) (5 ) Net periodic benefit cost before special events 18 41 70 (11 ) (12 ) (10 ) Curtailments, settlements and other losses 7 — 14 (1 ) — — $ 25 $ 41 $ 84 $ (12 ) $ (12 ) $ (10 ) The prior service credits and the actuarial gains and losses are amortized to “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations, over the expected average remaining service lifetime or the average future lifetime, as applicable, of the respective plans. We estimate that $34 million of actuarial losses and $15 million of prior service credits will be amortized from accumulated other comprehensive loss into our Consolidated Statements of Operations in 2018 . Assumptions used to determine benefit obligations and net periodic benefit cost The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net periodic benefit cost for the years ended December 31, 2017 , 2016 and 2015 , were as follows: Pension Plans OPEB Plans 2017 2016 2015 2017 2016 2015 Benefit obligations: Discount rate 3.6 % 3.8 % 4.2 % 3.6 % 3.9 % 4.4 % Rate of compensation increase 2.1 % 2.5 % 2.5 % Net periodic benefit cost: Discount rate 3.8 % 4.2 % 4.0 % 3.9 % 4.4 % 4.1 % Expected return on assets 6.3 % 6.2 % 6.3 % Rate of compensation increase 2.5 % 2.5 % 2.5 % The discount rate for our domestic and foreign plans was determined with a model that develops a hypothetical high-quality bond portfolio, where the bonds are theoretically purchased to settle the expected benefit payments of the plans. The discount rate reflects the single rate that produces the same discounted values as the value of the theoretical bond portfolio. In determining the expected return on assets, we considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. In determining the rate of compensation increase, we reviewed historical salary increases and promotions, while considering current industry conditions, the terms of collective bargaining agreements with our employees and the outlook for our industry. In determining the life expectancy rate of our domestic and foreign plans, we used the most-recent actuarially-determined mortality tables and improvement scales. For the foreign plans, the mortality tables were adjusted with the result of our historical mortality experience study. The rates used are consistent with our future expectations of life expectancy for the employees who participate in our pension and OPEB plans. The assumed health care cost trend rates used to determine the benefit obligations for our domestic and foreign OPEB plans as of December 31, 2017 and 2016 , were as follows: 2017 2016 Domestic Plans Foreign Plans Domestic Plans Foreign Plans Health care cost trend rate assumed for next year 7.2 % 4.8 % 7.0 % 4.2 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.5 % 4.5 % 4.5 % 4.0 % Year that the rate reaches the ultimate trend rate 2030 2028 2028 2028 For the health care cost trend rates, we considered historical trends for these costs, actual experience of the plans, recently enacted health care legislation as well as future expectations. Variations of the health care cost trend rate can have a significant effect on the amounts reported. A 1% change in this assumption would have had the following impact on our 2017 OPEB obligation and costs for our domestic and foreign plans: 1% Increase 1% Decrease (In millions, except percentages) Domestic Plans Foreign Plans Domestic Plans Foreign Plans OPEB obligation $ 3 5 % $ 5 5 % $ (3 ) (4 )% $ (5 ) (4 )% Service and interest costs $ — 7 % $ — 6 % $ — (6 )% $ — (5 )% Fair value of plan assets The fair value of plan assets held by our pension plans as of December 31, 2017 , was as follows: (In millions) Total Level 1 Level 2 Equity securities: U.S. companies $ 882 $ 882 $ — Non-U.S. companies 1,132 1,132 — Debt securities: Corporate and government securities 1,244 126 1,118 Asset-backed securities 275 — 275 Cash and cash equivalents 169 166 3 Other plan liabilities, net (2 ) — (2 ) Total before investments measured at NAV $ 3,700 $ 2,306 $ 1,394 Investments measured at NAV 677 $ 4,377 The fair value of plan assets held by our pension plans as of December 31, 2016 , was as follows: (In millions) Total Level 1 Level 2 Equity securities: U.S. companies $ 865 $ 865 $ — Non-U.S. companies 889 889 — Debt securities: Corporate and government securities 1,281 163 1,118 Asset-backed securities 71 — 71 Cash and cash equivalents 330 330 — Other plan assets, net 35 — 35 Total before investments measured at NAV $ 3,471 $ 2,247 $ 1,224 Investments measured at NAV 602 $ 4,073 Equity securities include large-cap, mid-cap and small-cap publicly-traded companies mainly located in the United States, Canada and other developed countries, as well as commingled equity funds invested in the same types of securities. The fair value of the equity securities is determined based on quoted market prices (Level 1). Debt securities include corporate bonds of U.S. and Canadian companies from diversified industries, bonds and Treasuries issued by the U.S. government and the Canadian federal and provincial governments, asset-backed securities and commingled fixed income funds invested in these same types of securities. The fair value of the debt securities is determined based on quoted market prices (Level 1), market-corroborated inputs such as matrix prices, yield curves and indices (Level 2). Other plan assets and liabilities include accrued interest and dividends, and amounts receivable or payable for unsettled security transactions. The fair value of accrued interest and dividends is determined based on market-corroborated inputs such as declared dividends and stated interest rates (Level 2). The fair value of receivables and payables for unsettled security transactions is determined based on market-corroborated inputs such as the trade date fair value of the security (Level 2). Investments measured at NAV are excluded from the fair value hierarchy tables. These investments are commingled funds, composed of either debt securities, equity securities or real estate investments, where the corresponding NAV per share is equal to the total net assets divided by the total number of shares. Long-term strategy and objective Our investment strategy and objective is to maximize the long-term rate of return on our plan assets within an acceptable level of risk in order to meet our current and future obligations to pay benefits to qualifying employees and their beneficiaries while minimizing and stabilizing pension benefit costs and contributions. Diversification of assets is achieved through strategic allocations to various asset classes, and by retaining multiple, experienced third-party investment management firms with complementary investment styles and philosophies to implement these allocations. Risk is further managed by reviewing our investment policies at least annually and monitoring our fund managers at least quarterly for compliance with mandates and performance measures. A series of permitted and prohibited investments are listed in our respective investment policies, which are provided to our fund managers. The use of derivative financial instruments for speculative purposes and investments in the equity or debt securities of Resolute Forest Products and its affiliates is prohibited. We have established a target asset allocation policy and ranges for each participating defined benefit pension plan based upon analysis of risk/return tradeoffs and correlations of asset mixes given long-term historical returns, prospective capital market returns, forecasted benefit payments and the forecasted timing of those payments. The targeted asset allocation policy of the plan assets is designed to hedge the change in the pension liabilities resulting from fluctuations in the discount rate by investing in debt and other securities, while also generating excess returns required to reduce the unfunded pension deficit by investing in equity securities with higher potential returns. The targeted asset allocation policy of each participating defined benefit pension plan is 50% equity securities, with an allowable range of 30% to 60% , and 50% debt and other securities, with an allowable range of 40% to 70% , including up to 5% in short-term instruments required for near-term liquidity needs. Approximately 60% of the equity securities are targeted to be invested in the U.S. and Canada, with the balance in other developed and emerging countries. Substantially all of the debt securities are targeted to be invested in the U.S. and Canada. The asset allocation for each participating defined benefit pension plan is reviewed periodically and, when necessary, rebalanced to bring the asset allocation within the prescribed ranges. Expected benefit payments and future contributions As of December 31, 2017 , benefit payments expected to be paid over the next 10 years are as follows: (In millions) Pension Plans (1) OPEB Plans 2018 $ 380 $ 15 2019 372 14 2020 367 14 2021 363 13 2022 357 13 2023 - 2027 1,694 60 (1) Benefit payments are expected be paid from the plans’ net assets. We expect our 2018 pension contributions (excluding contributions to our defined contribution plans) to be approximately $105 million , including pension contributions of Cdn $87 million ( $69 million , based on the exchange rate in effect on December 31, 2017 ) related to our Canadian plans. Patient Protection and Affordable Care Act In March 2010, the Patient Protection and Affordable Care Act (the “PPACA”) was enacted, potentially impacting our cost to provide healthcare benefits to eligible active and retired employees. The PPACA has both short-term and long-term implications on benefit plan standards. Implementation of this legislation began in 2010 and is expected to continue in phases from 2011 through 2020. We have analyzed this legislation to determine: (i) the impact of the required plan standard changes on our employee healthcare plans, (ii) the effect of the excise tax on high cost healthcare plans and (iii) the resulting costs. The impact, for those changes that were currently estimable, was not material to our results of operations. In 2013, PPACA also introduced the health insurance exchange system to facilitate the purchase of state health insurance. Individuals may purchase insurance from a set of government standardized plans offering federal subsidies. In light of this new arrangement, we decided to transfer post‑Medicare coverage via a Medicare Exchange program starting in 2014 for U.S. non-unionized employees and in 2015 for U.S. unionized employees. Canadian pension funding Prior to December 31, 2016, the funding of our material Canadian registered pension plans, which we refer to as the “affected plans,” was governed by regulations specific to us, adopted by the provinces of Quebec and Ontario. We refer to these regulations, as the “funding relief regulations.” On December 16, 2016, the province of Ontario amended the Ontario funding relief regulation, which we refer to as the “Ontario amendment,” following which, on December 19, 2016, we provided notice to the Quebec pension plan regulatory authorities that we would voluntarily exit the Quebec funding relief regulation as of December 31, 2016. As a result, since January 1, 2017, all of our Quebec pension plans have been subject to Quebec’s Supplemental Pension Plans Act , or the “SPPA,” which is the pension plan funding regime generally applicable to pension plans in that province. The Ontario funding relief regulation, as amended by the Ontario amendment, continues to apply to us and will end on December 31, 2020. As a result of the Ontario amendment and our exit from the Quebec funding relief regulation, from July 2017 through December 2020, our annual basic contribution to the Ontario affected plans became Cdn $9 million , compared to the basic contribution from January 2017 to June 2017 of Cdn $5 million for the six-month period. Our contributions to our Quebec plans are determined annually on a going concern basis under the Quebec’s SPPA. In addition to the basic contribution, the funding relief regulations required us to make a supplemental contribution, beginning in 2016, should the affected plans’ aggregate solvency ratio be more than 2% below the target specified in the regulations for the preceding year, subject to certain conditions. Following the Ontario amendment and our exit from the Quebec funding relief regulation, we are still required to make a supplemental contribution to the Ontario plans, payable over a three -year period, should the Ontario affected plans’ aggregate solvency ratio be below the 2% target. Given the prevailing interest rates, we do not expect to make a supplemental contribution in 2018. Should an Ontario plan move to surplus before the funding relief regulation expires in 2020, it will cease to be subject to the Ontario funding relief regulation. After 2020, the Ontario plans will become subject to Ontario funding rules in effect at that time. We are permitted to exit the Ontario funding relief regulation earlier than December 31, 2020, by providing a notice to that effect to the province of Ontario by December 31 of any year. Our exit from such regulation would take effect for the year following the date of notice. If we elect to exit the Ontario funding relief regulation, our pension plans in Ontario would become subject to the pension plan funding regime generally applicable at that time to pension plans in that province. Our principal Canadian subsidiaries entered into certain undertakings with the Government of Quebec and Ontario in connection with the adoption of the funding relief regulations in 2010. As a result of our exit from the Quebec funding relief regulation, effective December 31, 2016, the undertakings we had made with the Government of Quebec, as amended, expired in accordance with their terms. Comparable undertakings we had entered into with the Government of Ontario expired in December 2015. Neither the expiration of the Quebec undertakings, nor the Ontario undertakings, eliminated ongoing obligations we incurred under the terms of those undertakings prior to their expiration, including the undertaking requiring us to make an additional solvency deficit reduction contribution to our pension plans of Cdn $75, payable over four years, for each metric ton of capacity reduced in Quebec or Ontario, in the event of downtime of more than six consecutive months or nine cumulative months over a period of 18 months. As part of the 2014 amendments to the funding relief regulations, it was determined that no additional contribution would be made in respect of any capacity reduction in Quebec before April 13, 2013. Also, on March 31, 2017, we reached an agreement with the province of Ontario stipulating that we would no longer be required to make additional contributions for capacity reductions that occurred in Ontario after April 15, 2014. As a result of this agreement, our requirement to make additional contributions to the Ontario affected plans was reduced by Cdn $16 million for 2017 and Cdn $8 million for 2018. We made additional contributions for past capacity reductions to the affected plans of Cdn $14 million in 2017 and will also be required to make our final remaining contributions for past capacity reductions of approximately Cdn $11 million , Cdn $4 million , and Cdn $2 million in 2018, 2019, and 2020, respectively. As originally adopted, the funding relief regulations provided that corrective measures would be required if the aggregate solvency ratio in the affected plans fell below a prescribed level under the targets specified by the regulations as of December 31 in any year through 2014. This requirement was definitively removed in 2013, but under the Ontario regulation, the corresponding 2011 and 2012 amounts in respect of Ontario plans (Cdn $110 million in the aggregate) have been deferred to after the expiration of the funding relief regulations in 2020, and will then be payable over five years in equal monthly installments starting on December 31, 2021, but only up to the elimination of the then remaining deficit, if any. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15. Income Taxes (Loss) income before income taxes by taxing jurisdiction for the years ended December 31, 2017 , 2016 and 2015 , was as follows: (In millions) 2017 2016 2015 United States $ (289 ) $ (227 ) $ (355 ) Foreign 295 170 99 $ 6 $ (57 ) $ (256 ) The income tax (provision) benefit for the years ended December 31, 2017 , 2016 and 2015 , was comprised of the following: (In millions) 2017 2016 2015 U.S. Federal and State: Current $ — $ — $ 4 Deferred 2 (11 ) 32 2 (11 ) 36 Foreign: Current (4 ) (5 ) — Deferred (82 ) (3 ) (35 ) (86 ) (8 ) (35 ) Total: Current (4 ) (5 ) 4 Deferred (80 ) (14 ) (3 ) $ (84 ) $ (19 ) $ 1 Tax Cuts and Jobs Act On December 22, 2017, the TCJA was enacted into law which, among other changes, reduced the U.S. federal statutory income tax rate from 35% to 21%, and implemented a new system of taxation for non-U.S. earnings, including the imposition of a one-time transition tax on deemed repatriation of undistributed earnings of non-U.S. subsidiaries. We are required to recognize the effects of tax law changes in the period of enactment. On December 22, 2017, the United States Securities and Exchange Commission (the “SEC”) issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the TCJA, allowing us to account for the TCJA provisions under the following scenarios: (a) reflect the tax effects of the TCJA for which the accounting is complete, (b) report provisional amounts for those income tax effects of the TCJA where the accounting is incomplete but a reasonable estimate can be determined, or (c) not to report provisional amounts for any income tax effects of the TCJA for which a reasonable estimate cannot be determined until the reporting period that a reasonable estimate can be determined, and to continue to apply ASC 740 based on the provision of the tax laws that were in effect immediately prior to the enactment of the TCJA. The SEC provides that the accounting must be completed during the 12-month measurement period following the enactment of the TCJA. Based on available information, we have provisionally estimated the impacts of the TCJA on our 2017 financial results, with the exception of the effects of the newly enacted GILTI regime as a reasonable estimate cannot be determined. Accordingly, we have provisionally decreased our net U.S. deferred income tax assets and related valuation allowance by $356 million and $359 million , respectively, in 2017, mainly to correspond to the lower U.S. federal statutory income tax rate. The final impact of the TCJA may differ due to, among other things, changes in interpretations, the issuance of additional legislative guidance and clarification, and actions we may take as a result of the TCJA. During the measurement period, we will recognize any adjustments to our provisional amounts in the reporting period the adjustments are determined. Accordingly, we continue to evaluate its effects on our 2018 financial results. The income tax (provision) benefit attributable to income (loss) before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 35% for the years ended December 31, 2017 , 2016 and 2015 , as a result of the following: (In millions) 2017 2016 2015 Income (loss) before income taxes $ 6 $ (57 ) $ (256 ) Income tax (provision) benefit: Expected income tax (provision) benefit (2 ) 20 90 Changes resulting from: Valuation allowance (1) 247 (99 ) (109 ) Enactment of change in tax rate (2) (368 ) — — Adjustments for unrecognized tax benefits (3) 1 55 — Foreign exchange 6 (9 ) (20 ) Research and development, and other tax incentives 1 — 1 State income taxes, net of federal income tax benefit 10 6 12 Foreign tax rate differences 23 11 8 Effect of change in tax rates (4) — — 18 Other, net (2 ) (3 ) 1 $ (84 ) $ (19 ) $ 1 (1) During 2017, we recorded a decrease in our valuation allowance of $359 million , due to the enactment of the TCJA, offset by an increase of $112 million , primarily related to our U.S. operations where we recognize a valuation allowance against virtually all of our net deferred income tax assets. During 2016 and 2015, we recorded a valuation allowance of $99 million and $109 million , respectively, mainly related to our U.S. operations where we recognized a full valuation allowance against our net deferred income tax assets. (2) During 2017, we recorded decreases to our net deferred income tax assets of $356 million due to the enactment of the TCJA, and $12 million due to a lower foreign income tax rate. (3) During 2016, we recorded tax benefits of $55 million , almost all of which related to the release of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. (4) During 2015, we recorded an income tax benefit of $18 million as a result of a change in tax rates on deferred income taxes, primarily due to an intercompany asset transfer in connection with an operating company realignment. Deferred income taxes At each reporting period, we assess whether it is more likely than not that the deferred income tax assets will be realized, based on the review of all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results, and prudent and feasible tax planning strategies. The carrying value of our deferred income tax assets reflects our expected ability to generate sufficient future taxable income in certain tax jurisdictions to utilize these deferred income tax benefits. Following the assessment of our ability to realize the deferred income tax assets of our U.S. operations, we concluded that existing negative evidence outweighed positive evidence. As a result, we recognize a valuation allowance against virtually all of our net U.S. deferred income tax assets. The cumulative loss of our U.S. operations limited our ability to consider other subjective positive evidence. A valuation allowance does not reduce our underlying tax attributes, nor hinders our ability to use them in the future. The weight of positive evidence, which included a review of historical cumulative earnings and our forecasted future earnings, resulted in the conclusion by management that no significant valuation allowances were required for our deferred income tax assets in Canada, as they were determined to be more likely than not to be realized. Deferred income taxes as of December 31, 2017 and 2016 , were comprised of the following: (In millions) 2017 2016 Fixed assets $ (4 ) $ (44 ) Other liabilities (23 ) (21 ) Deferred income tax liabilities (27 ) (65 ) Fixed assets 506 520 Pension and OPEB plans 330 392 Operating loss carryforwards 619 838 Capital loss carryforwards 12 11 Undeducted research and development expenditures 196 185 Tax credit carryforwards 119 107 Other assets 72 49 Deferred income tax assets 1,854 2,102 Valuation allowance (764 ) (1,000 ) Net deferred income tax assets $ 1,063 $ 1,037 Amounts recognized in our Consolidated Balance Sheets consisted of: Deferred income tax assets $ 1,076 $ 1,039 Deferred income tax liabilities (13 ) (2 ) Net deferred income tax assets $ 1,063 $ 1,037 The balance of tax attributes and their dates of expiration as of December 31, 2017 , were as follows: (In millions) Related Year of Expiration Operating loss carryforwards: U.S. federal operating loss carryforwards of $2,218 $ 466 (1 ) 2022 – 2037 U.S. state operating loss carryforwards of $1,868 95 (1 ) 2021 – 2037 Canadian federal and provincial (excluding Quebec) operating loss carryforwards of $73 18 2030 – 2037 Other operating loss carryforwards 40 2019 – 2027 $ 619 Capital loss carryforwards: Canadian net capital loss carryforwards of $43 12 Indefinite $ 12 Undeducted research and development expenditures: Canadian federal and provincial (excluding Quebec) undeducted research and development expenditures of $694 $ 116 Indefinite Quebec undeducted research and development expenditures of $837 80 Indefinite $ 196 Tax credit carryforwards: Canadian research and development tax credit carryforwards $ 96 2021 – 2037 U.S. state and other tax credit carryforwards 23 (1 ) 2018 – 2032 $ 119 (1) As of December 31, 2017 , we had a valuation allowance against virtually all of our U.S. operations net deferred income tax assets. Our U.S. federal net operating loss carryforwards are subject to the U.S. Internal Revenue Code of 1986, § 382, as amended, (“IRC § 382”) limitation, resulting from a previous ownership change. We do not expect that IRC § 382 would limit the utilization of our available U.S. federal net operating loss carryforwards prior to their expiration. We do not provide for the additional U.S. and foreign income taxes that would become payable upon remittance of undistributed earnings of foreign subsidiaries as we are evaluating the reinvestment of such earnings for the provision of the TCJA. In addition, we do not expect to be impacted by the one-time transition tax on deemed repatriation of undistributed earnings. Deferred tax charge On January 1, 2017, we adopted ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory,” which eliminates the deferral of the tax effects of intra-entity asset transfers other than inventory until the transferred assets are sold to a third party or recovered through use. Accordingly, the deferred tax charge recognized in 2015 as a result of a gain on an intercompany asset transfer in connection with an operating company realignment was eliminated, resulting in a decrease in “Other assets” of $35 million and an increase in deferred tax assets of $32 million , with a cumulative-effect adjustment of $3 million to “Deficit” in our Consolidated Balance Sheet as of January 1, 2017. Unrecognized tax benefits The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2017 and 2016 : (In millions) 2017 2016 Beginning of year $ 44 $ 97 Increase (decrease) in unrecognized tax benefits resulting from: Enactment of change in tax rate (1) (15 ) — Positions taken in the current period — 1 Expirations of statute limitations (2) — (55 ) Settlements with taxing authorities (1 ) (1 ) Change in foreign exchange rate — 2 End of year $ 28 $ 44 (1) During 2017, previously unrecognized tax benefits decreased by $15 million due to the enactment of the TCJA. (2) During 2016, we released $55 million of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. We recognize accrued interest and penalties on unrecognized tax benefits as components of the income tax provision. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $2 million . In the normal course of business, we are subject to audits from federal, state, provincial and other tax authorities. U.S. federal tax returns for 2014 and subsequent years, as well as Canadian tax returns for 2013 and subsequent years, remain subject to examination by tax authorities. We do not expect a significant change to the amount of unrecognized tax benefits over the next 12 months. However, any adjustments arising from certain ongoing examinations by taxing authorities could alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions, and these adjustments could differ from the amount accrued. We believe that taxes accrued in our Consolidated Balance Sheets fairly represent the amount of income taxes to be settled or realized in the future. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies Legal matters We become involved in various legal proceedings and other disputes in the normal course of business, including matters related to contracts, commercial and trade disputes, taxes, environmental issues, activist damages, employment and workers’ compensation claims, grievances, human rights complaints, pension and benefit plans and obligations, health and safety, financial reporting and disclosure obligations, corporate governance, antitrust, First Nations claims, and other matters. Although the final outcome is subject to many variables and cannot be predicted with any degree of certainty, we regularly assess the status of the matters and establish provisions (including legal costs expected to be incurred) when we believe an adverse outcome is probable, and the amount can be reasonably estimated. Except as described below and for claims that cannot be assessed due to their preliminary nature, we believe that the ultimate disposition of these matters outstanding or pending as of December 31, 2017 , will not have a material adverse effect on our Consolidated Financial Statements. Countervailing duty and anti-dumping investigations on uncoated groundwood paper On January 9, 2018, the U.S. Department of Commerce (“Commerce”) announced its preliminary determinations in its countervailing duty investigation of Canadian-origin uncoated groundwood (“UGW”) paper exported to the U.S. As a result, since January 16, 2018, we have been required to pay cash deposits to the U.S. at a rate of 4.42% for estimated countervailing duties on our U.S. imports of the UGW paper produced at our Canadian mills, with the exception of supercalendered (“SC”) paper, which is subject to distinct countervailing duties, as further discussed below. Commerce has not yet issued its preliminary determination in the anti-dumping investigation. For additional information, see Note 23, “Subsequent Event .” Countervailing duty and anti-dumping investigations of softwood lumber products On November 25, 2016, countervailing duty and anti-dumping petitions were filed with Commerce and the U.S. International Trade Commission (“ITC”) by certain U.S. softwood lumber producers and forest landowners, requesting that the U.S. government impose countervailing and anti-dumping duties on Canadian-origin softwood lumber products exported to the U.S. One of our subsidiaries was identified in the petition as being a Canadian exporting producer of softwood lumber products to the U.S. and was selected as a mandatory respondent to be investigated by Commerce in both the countervailing duty and anti-dumping investigations. On April 24, 2017, Commerce announced its preliminary determinations in the countervailing duty investigation and, as a result, after April 28, 2017, we were required to pay cash deposits to the U.S. at a rate of 12.82% for estimated countervailing duties on our U.S. imports of softwood lumber products produced at our Canadian sawmills. The preliminary rate remained in effect until August 26, 2017. Commerce changed the rate in its final determination on November 2, 2017, but the new rate did not take effect until December 28, 2017, following the ITC’s final determination and publication of a countervailing duty order. Since that date, we have been required to resume paying cash deposits to the U.S, at a rate of 14.7% for our softwood lumber product U.S. imports from our Canadian sawmills. This rate will continue until Commerce sets a duty rate in an administrative review, or a new rate may be set through a remand determination should a North American Free Trade Agreement (“NAFTA”) binational panel on appeal remand the final determination to Commerce. Through December 31, 2017 , our cash deposits totaled $17 million and, based on the 14.7% rate and our current operating parameters, could be as high as $65 million per year. On June 26, 2017, Commerce announced its preliminary determinations in the anti-dumping investigation and, as a result, after June 30, 2017, we were required to pay cash deposits to the U.S. at a rate of 4.59% for estimated anti-dumping duties on our U.S. imports of softwood lumber products produced at our Canadian sawmills. On November 2, 2017, Commerce announced its final determinations in the anti-dumping investigation and, as a result, since November 8, 2017, we have been required to pay cash deposits to the U.S, at a rate of 3.2% for our softwood lumber product U.S. imports from our Canadian sawmills, the rate that will apply until Commerce sets a duty rate in an administrative review or in a possible remand determination. Through December 31, 2017 , our cash deposits totaled $9 million and, based on the 3.2% rate and our current operating parameters, could be as high as $15 million per year. The countervailing and anti-dumping duty rates of 14.7% and 3.2% , respectively, will continue until Commerce sets a duty rate in an administrative review, or a new rate may be set through a remand determination should a NAFTA binational panel on appeal remand the final determination to Commerce. We are not presently able to determine the ultimate resolution of these matters, but we believe it is not probable that we will ultimately be assessed with significant duties, if any, on our U.S. imports of Canadian-produced softwood lumber products. Accordingly, no contingent loss was recorded in respect of these petitions in our Consolidated Statement of Operations for the year ended December 31, 2017 , and our cash deposits were recorded in “Other assets” in our Consolidated Balance Sheets. Countervailing duty investigation on SC paper On February 26, 2015, a countervailing duty petition was filed with Commerce and the ITC by certain U.S. SC paper producers requesting that the U.S. government impose countervailing duties on Canadian-origin SC paper exported to the U.S. market. One of our subsidiaries was identified in the petition as being a Canadian exporting producer of SC paper to the U.S. and was selected as a mandatory respondent to be investigated by Commerce. As a result of that investigation, after August 3, 2015, we were required to pay cash deposits to the U.S. for estimated countervailing duties on our U.S. imports of SC paper produced at our Canadian mills. Between August 3, 2015 and October 15, 2015, we were required to make cash deposits at a rate of 2.04% . On October 15, 2015, that rate increased to 17.87% , 17.10% of which was not based on any countervailable subsidy we received, but rather on a punitive application of “adverse facts available.” We are required to continue making cash deposits at the 17.87% rate until Commerce sets a countervailing duty rate in an administrative review or a new rate is set through a remand determination of a NAFTA binational panel. We were selected as a mandatory respondent in the first administrative review, which Commerce commenced on February 13, 2017. On January 3, 2018, Commerce announced its preliminary determinations in this administrative review, whereby it determined that we received countervailable subsidies of 1.79% that benefited our Canadian production of SC paper during the relevant period (from August 3, 2015 to December 31, 2015). Our countervailing duty rate for our SC paper exported to the U.S. market in 2015, if any, will be based on Commerce’s final determinations in this administrative review. Following the initial administrative review, we may remain subject to annual administrative reviews until December 2020, or possibly later, and the duty rate, if any, applicable to our SC paper exported to the U.S. market during periods subsequent to December 31, 2015, will be based on Commerce’s determinations in such future administrative reviews. Both the petitioner and the respondent companies may request an administrative review. However, Commerce does not have to review separately more than two companies in any one administrative review, typically the two with the greatest volume of exports during the period of review. Were we not granted our request for an administrative review when other companies were to be reviewed, we would be assigned a weighted-average rate based on the rates of the individually reviewed companies. Regardless, the countervailing duty rate may change annually, subject to annual administrative reviews. The determination in each administrative review is subject to appeal. To the extent the countervailing duty rate set by Commerce is lower than 17.87% , we will recover excess deposits, plus interest. If the countervailing duty rate set by Commerce is at or above 17.87% , the deposits and any deficiency will be converted into actual countervailing duties. Following Commerce’s rate determination in October 2015, we appealed that determination to a bi-national panel under the NAFTA (the “Panel”). On April 13, 2017, the Panel issued its decision, remanding the matter to Commerce and upholding several of Commerce’s determinations, including among others its application of adverse facts available in setting our 17.87% subsidy rate. Notwithstanding the Panel’s decision, Commerce’s prior determination of adverse facts available does not apply in an administrative review. In addition, the Panel’s decision can be challenged by the Canadian government, although not until the conclusion of the remand process. The Canadian government has already filed a separate World Trade Organization challenge to Commerce’s countervailing duty determination in the SC paper investigation, including Commerce’s use of adverse facts available against us. Through December 31, 2017 , our cumulative cash deposits totaled $49 million , and based on our current operating parameters, could be as high as $25 million per year. We are not presently able to determine the ultimate resolution of this matter, but we believe it is not probable that we will ultimately be assessed with significant countervailing duties, if any, on our Canadian-produced SC paper. Accordingly, no contingent loss was recorded in respect of this petition in our Consolidated Statement of Operations for the year ended December 31, 2017 . These cash deposits were recorded in “Other assets” in our Consolidated Balance Sheets. Jedson Case On March 9, 2017, Jedson Engineering, Inc. and Jedson C.M., Inc. (the “Jedson plaintiffs”) filed a complaint against our subsidiary, Resolute FP US Inc., and other defendants in state court in Tennessee. The complaint alleged breach of contract and violation of Tennessee’s Prompt Pay Act for failure to pay for services in connection with the design and construction of our Calhoun tissue project, and sought a recovery of, and enforcement of mechanic’s liens for, approximately $10 million , plus interest and cost of litigation. On April 17, 2017, we filed an answer and counterclaim alleging, among other things, breach of contract and professional negligence by the Jedson plaintiffs and seeking recovery for, among other things, resulting costs on the project. On April 4, 2017, the Jedson plaintiffs also filed a motion for an injunction under the Prompt Pay Act seeking immediate payment of monies claimed and, on April 20, 2017, a motion to abate Resolute FP US Inc.’s counterclaim, both of which we opposed and have not been heard by the court. On August 25, 2017, the Jedson plaintiffs amended their complaint. As amended, the complaint includes allegations of fraud, intentional and negligent misrepresentation, unjust enrichment, and a claim for punitive damages in an amount of up to approximately $20 million . Effective February 20, 2018, the parties entered into an agreement to submit their disputes to binding private arbitration, including another complaint filed by a subcontractor of the Jedson plaintiffs (ProEnergy Crafts Inc.) against the Jedson plaintiffs, Resolute Forest Products US Inc. and other defendants for less than $1 million that had been consolidated with the other proceedings. On February 23, 2018, the state court issued an order staying the consolidated court proceedings pending completion of the arbitration subject to limited exceptions regarding certain defined procedural matters. The Company disputes the plaintiffs’ allegations, and intends to vigorously defend the action. The lawsuit is at a preliminary stage. Accordingly, we are not presently able to determine the ultimate resolution of this matter or to reasonably estimate the potential impact on our Consolidated Financial Statements. Modification of U.S. OPEB plan Effective January 1, 2015, we modified our U.S. OPEB plan so that unionized participants, upon reaching Medicare eligibility, are provided Medicare coverage via a Medicare Exchange program rather than via a Company-sponsored medical plan. On March 2, 2016, a proposed class action lawsuit ( Reynolds, et al v. Resolute Forest Products Inc., Resolute FP US Inc., Resolute FP US Health and Resolute Welfare Benefit Plan ) was filed in the United States District Court for the Eastern District of Tennessee (“District Court”) on behalf of certain Medicare-eligible retirees who were previously unionized employees of our Calhoun, Catawba, and Coosa Pines mills, and their spouses and dependents (the “proposed class”). The plaintiffs allege that the modifications described above breach the collective bargaining agreements and plan covering the members of the proposed class in the lawsuit. Plaintiffs seek reinstatement of the health care benefits as in effect before January 1, 2015, for the proposed class in the lawsuit. On May 23, 2016, the Company filed a motion to dismiss the complaint. The motion to dismiss was denied by the District Court on March 1, 2017. On June 28, 2017, a settlement agreement in principle was reached between the parties to the lawsuit. Because the settlement will resolve the claims of the proposed class, court approval of the settlement will be required. A final settlement order issued by the court would result in an amendment of our U.S. OPEB plan and a corresponding increase to both “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet, with any such increase to be recorded at the date the plan amendment is adopted. We do not expect that the resulting increase would have a material impact on our Consolidated Financial Statements. Fibrek acquisition Effective July 31, 2012, we completed the final step of the transaction pursuant to which we acquired the remaining 25.4% of the outstanding Fibrek Inc. (“Fibrek”) shares, following the approval of Fibrek’s shareholders on July 23, 2012, and the issuance of a final order of the Quebec Superior Court in Canada approving the arrangement on July 27, 2012. Certain former shareholders of Fibrek exercised (or purported to exercise) rights of dissent in respect of the transaction, asking for a judicial determination of the fair value of their claim under the Canada Business Corporations Act . No consideration has to date been paid to the former Fibrek shareholders who exercised (or purported to exercise) rights of dissent. Any such consideration will only be paid out upon settlement or judicial determination of the fair value of their claims and will be paid entirely in cash. Accordingly, we cannot presently determine the amount that ultimately will be paid to former holders of Fibrek shares in connection with the proceedings, but we have accrued approximately Cdn $14 million ( $11 million , based on the exchange rate in effect on December 31, 2017 ) for the eventual payment of those claims. The hearing in this matter is expected to occur in 2019. Partial wind-ups of pension plans On June 12, 2012, we filed a motion for directives with the Quebec Superior Court, the court with jurisdiction in the creditor protection proceedings under the CCAA (the “CCAA Creditor Protection Proceedings”), seeking an order to prevent pension regulators in each of Quebec, New Brunswick, and Newfoundland and Labrador from declaring partial wind-ups of pension plans relating to employees of former operations in New Brunswick, and Newfoundland and Labrador, or a declaration that any claim for accelerated reimbursements of deficits arising from a partial wind-up is a barred claim under the CCAA Creditor Protection Proceedings. We contend, among other things, that any such declaration, if issued, would be inconsistent with the Quebec Superior Court’s sanction order confirming the CCAA debtors’ CCAA Plan of Reorganization and Compromise, as amended, and the terms of our emergence from the CCAA Creditor Protection Proceedings. A partial wind-up would likely shorten the period in which any deficit within those plans, which could reach up to Cdn $150 million ( $120 million , based on the exchange rate in effect on December 31, 2017 ), would have to be funded if we do not obtain the relief sought. The hearing in this matter is expected to occur in 2018. Environmental matters We are subject to a variety of federal or national, state, provincial and local environmental laws and regulations in the jurisdictions in which we operate. We believe our operations are in material compliance with current applicable environmental laws and regulations. Environmental regulations promulgated in the future could require substantial additional expenditures for compliance and could have a material impact on us, in particular, and the industry in general. We may be a “potentially responsible party” with respect to four hazardous waste sites that are being addressed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (commonly known as Superfund) or the Resource Conservation and Recovery Act corrective action authority. We believe we will not be liable for any significant amounts at any of these sites. We have recorded $8 million of environmental liabilities as of both December 31, 2017 and 2016 , primarily related to environmental remediation related to closed sites. The amount of these liabilities represents management’s estimate of the ultimate settlement based on an assessment of relevant factors and assumptions and could be affected by changes in facts or assumptions not currently known to management for which the outcome cannot be reasonably estimated at this time. These liabilities are included in “Accounts payable and accrued liabilities” or “Other liabilities” in our Consolidated Balance Sheets. We have also recorded $24 million and $23 million of asset retirement obligations as of December 31, 2017 and 2016 , respectively, primarily consisting of liabilities associated with landfills, sludge basins and the dismantling of retired assets. These liabilities are included in “Accounts payable and accrued liabilities” or “Other liabilities” in our Consolidated Balance Sheets. Other matters On October 30, 2014, we received a notice from the Ministry of Natural Resources and Forestry of Ontario (the “MNRF”) directing us to repay a conditional amount of Cdn $23 million ( $18 million , based on the exchange rate in effect on December 31, 2017 ) offered to us in 2007 toward the construction of an electricity-producing turbine, should we fail to restart our Fort Frances (Ontario) pulp and paper mill or otherwise implement an alternative remedy acceptable to the MNRF. Several extensions of the deadline to implement an alternative remedy were granted to us by the MNRF, the last of which extended the remedy date to June 30, 2017. However, as a result of an agreement reached on June 29, 2017, we will not be required to repay this amount. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Share Capital | Note 17. Share Capital Common stock We are authorized under our certificate of incorporation, as amended and restated, to issue up to 190 million shares of common stock, par value $0.001 per share, of which 9,020,960 shares are reserved for issuance under the Resolute Forest Products Equity Incentive Plan (as amended, the “Incentive Plan”). Treasury stock On May 28, 2015, our board of directors authorized a $50 million increase to our existing $100 million share repurchase program, which was originally launched in May of 2012. During the year ended December 31, 2015, we repurchased an additional 5.5 million shares, at a cost of $59 million . We did not repurchase any shares during 2017 and 2016. There remains $24 million under the program. Dividends We did not declare or pay any dividends on our common stock during the years ended December 31, 2017 , 2016 and 2015 . Preferred stock We are authorized under our certificate of incorporation, as amended and restated, to issue 10 million shares of preferred stock, par value $0.001 per share. As of December 31, 2017 and 2016 , no preferred shares were issued and outstanding. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Note 18. Share-Based Compensation Incentive Plan The Incentive Plan, which became effective in 2010 and is administered by the human resources and compensation/nominating and governance committee of the board of directors, provides for the grant of equity-based and liability-based awards, including stock options, stock appreciation rights, restricted stock, RSUs, DSUs, PSUs (collectively, “stock incentive awards”), and cash incentive awards to certain of our officers, directors, employees, consultants and advisors. As discussed in Note 17, “Share Capital ,” we have been authorized to issue stock incentive awards for up to 9 million shares under the Incentive Plan. As of December 31, 2017 , approximately 1.3 million shares were available for issuance. Awards for employees who retire (upon meeting certain age and service criteria) at least six months after the grant date and prior to the end of the vesting period will continue to vest after retirement, in accordance with the normal vesting schedule. The requisite service periods for the stock incentive awards are reduced on an individual basis, as necessary, to reflect the grantee’s individual retirement eligibility date. For the years ended December 31, 2017 , 2016 and 2015 , share-based compensation expense under the Incentive Plan was $18 million ( no tax benefit), $11 million ( no tax benefit) and $12 million ( no tax benefit), respectively. As of December 31, 2017 , there was approximately $10 million of unrecognized compensation cost, which is expected to be recognized over a remaining service period of three years . Stock options Under the Incentive Plan, stock options become exercisable ratably over a period of four years and, unless terminated earlier in accordance with their terms, expire 10 years from the date of grant. New shares of our common stock are issued upon the exercise of a stock option. In certain cases, we withhold shares in respect of option costs and applicable taxes. We have not granted any stock options since 2013. The activity of outstanding stock options for the year ended December 31, 2017 , was as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Contractual Life (years) Balance as of December 31, 2016 1,415,971 $ 15.77 5.8 Forfeited (2,774 ) 15.66 Expired (108,656 ) 14.09 Balance as of December 31, 2017 1,304,541 $ 15.90 4.8 Exercisable as of December 31, 2017 1,304,541 $ 15.90 4.8 The total intrinsic value of stock options exercised in 2015 was less than $1 million. Restricted stock units and deferred stock units Under the Incentive Plan, each RSU and DSU granted provides the holder upon vesting the right to receive one share of our common stock for equity-based awards, and cash for liability-based awards. The awards vest ratably over a period of four years for employees and one year for directors. Awards to employees are settled upon vesting, while awards to directors are settled ratably over a period of three years or upon separation from the board of directors, as applicable, based on the director’s country of residency. We withhold shares in respect of applicable taxes. The activity of nonvested RSUs and DSUs for the year ended December 31, 2017 , was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2016 2,554,639 $ 6.20 Granted 434,022 7.34 Vested (909,575 ) 7.36 Forfeited (97,664 ) 5.28 Balance as of December 31, 2017 (1) 1,981,422 $ 5.96 (1) Includes 17,161 liability-based awards. There were 284,688 RSUs and DSUs granted to directors that vested but were not settled as of December 31, 2017. The weighted-average grant-date fair value of all RSUs and DSUs granted in 2016 and 2015 , was $3.97 and $7.94 , respectively. The total fair value of RSUs and DSUs vested in 2017 , 2016 and 2015 , was $8 million , $3 million and $3 million , respectively. Performance stock units Under the Incentive Plan, each PSU provides the holder the right to receive upon vesting one share of our common stock for equity-based awards, and cash for liability-based awards, subject to a performance adjustment. The awards vest after a period of 40 months upon which they are settled. We withhold shares in respect of applicable taxes. The activity of nonvested PSUs for the year ended December 31, 2017 , was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2016 2,345,420 $ 6.71 Granted 295,455 8.63 Forfeited (49,479 ) 5.67 Balance as of December 31, 2017 (1) 2,591,396 $ 6.94 (1) Includes 387,294 liability-based awards. The weighted-average grant-date fair value of all PSUs granted in 2016 and 2015 , was $3.95 and $7.54 , respectively. Deferred Compensation Plan In 2011, the board of directors adopted the Resolute Forest Products Outside Director Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows non-employee directors to surrender 50% or 100% of their cash fees in exchange for DSUs or RSUs, as applicable, based on the director’s country of residency. The number of awards issued pursuant to the Deferred Compensation Plan is based on 110% of the fees earned, resulting in a 10% premium incentive. Under the Deferred Compensation Plan, each RSU and DSU granted provides the holder the right to receive payment in cash in an amount equal to the fair market value of one share of our common stock upon vesting. The awards have a nonforfeitable right or vest ratably over a period of three years , as applicable, and are settled with cash ratably over a period of three years or upon separation from the board of directors, as applicable, based on the director’s country of residency. All of our outstanding stock incentive awards pursuant to the Deferred Compensation Plan were accounted for as liability awards. For the year ended December 31, 2017 , share-based compensation expense under the Deferred Compensation Plan was $1 million, and less than $1 million for the years ended December 31, 2016 and 2015 , respectively. RSUs and DSUs outstanding under the Deferred Compensation Plan as of December 31, 2017 and 2016, were 183,046 and 127,521 , respectively. The total fair value of RSUs and DSUs vested in each of 2017, 2016 and 2015, was less than $1 million. |
Operating Leases and Purchase O
Operating Leases and Purchase Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases and Purchase Obligations | Note 19. Operating Leases and Purchase Obligations We lease office and manufacturing premises, and office equipment under operating leases for which total expense was $8 million in 2017 , $9 million in 2016 and $8 million in 2015 . In the normal course of business, we have also entered into various supply agreements, guarantees, water rights agreements, purchase commitments and harvesting rights agreements (for land that we manage for which we make payments to various Canadian provinces based on the amount of timber harvested). As of December 31, 2017 , the commitments for purchase obligations and future minimum rental payments under operating leases were as follows: (In millions) Purchase Obligations (1) Operating Leases 2018 $ 81 $ 7 2019 54 6 2020 54 6 2021 45 5 2022 4 3 Thereafter 30 8 $ 268 $ 35 (1) Includes energy purchase obligations of $209 million through 2022 for certain of our pulp and paper mills. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Note 20. Segment Information We manage our business based on the products we manufacture. Accordingly, our reportable segments correspond to our principal product lines: market pulp, tissue, wood products, newsprint and specialty papers. None of the income or loss items following “ Operating income (loss) ” in our Consolidated Statements of Operations are allocated to our segments, since those items are reviewed separately by management. For the same reason, closure costs, impairment and other related charges, inventory write-downs related to closures, start-up costs, gains and losses on disposition of assets, acquisition-related costs, certain components of pension and OPEB costs and credits, as well as other discretionary charges or credits are not allocated to our segments. We allocate depreciation and amortization expense to our segments, although the related fixed assets and amortizable intangible assets are not allocated to segment assets. Additionally, all selling, general and administrative expenses are allocated to our segments, with the exception of certain discretionary charges and credits, which we present under “corporate and other.” In each of 2017 , 2016 and 2015 , no assets were identifiable by segment and reviewed by management. In the first quarter of 2017, we changed our presentation of segment operating income to reallocate the amortization of prior service credits component of pension and OPEB costs from the reportable segments to “corporate and other.” Current service costs will continue to be allocated to the reportable segments. This approach is consistent with the indicators management uses internally to evaluate performance, including those used by the chief operating decision maker. Prior service amounts have been reclassified to conform to the 2017 presentation. Information about certain segment data for the years ended December 31, 2017 , 2016 and 2015 , was as follows: (In millions) Market Pulp (1) Tissue (2) Wood Products (3) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales 2017 $ 911 $ 81 $ 797 $ 842 $ 882 $ 3,513 $ — $ 3,513 2016 836 89 596 1,009 1,015 3,545 — 3,545 2015 889 11 536 1,105 1,104 3,645 — 3,645 Depreciation and amortization 2017 $ 31 $ 5 $ 33 $ 66 $ 45 $ 180 $ 24 $ 204 2016 37 5 31 74 45 192 14 206 2015 53 1 37 64 71 226 11 237 Operating income (loss) 2017 $ 79 $ (6 ) $ 186 $ (23 ) $ (9 ) $ 227 $ (178 ) $ 49 2016 37 (10 ) 69 (16 ) 19 99 (125 ) (26 ) 2015 71 (1 ) 2 (25 ) 23 70 (289 ) (219 ) Capital expenditures 2017 $ 12 $ 101 $ 9 $ 6 $ 20 $ 148 $ 16 $ 164 2016 20 156 23 2 23 224 25 249 2015 60 41 43 10 13 167 18 185 (1) Inter-segment sales of $36 million , $33 million and $20 million , which are transacted at cost, were excluded from market pulp sales for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) Tissue capital expenditures consisted almost entirely of expenditures for the tissue manufacturing and converting facility in Calhoun. (3) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $20 million , $17 million and $20 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Sales are attributed to countries based on the location of the customer. No single customer, related or otherwise, accounted for 10% or more of our 2017 , 2016 or 2015 consolidated sales. No country in the “Other countries” group in the table below exceeded 2% of consolidated sales. Sales by country for the years ended December 31, 2017 , 2016 and 2015 , were as follows: (In millions) 2017 2016 2015 United States $ 2,387 $ 2,464 $ 2,421 Foreign countries: Canada 517 428 476 Mexico 126 126 150 Other countries 483 527 598 1,126 1,081 1,224 $ 3,513 $ 3,545 $ 3,645 Certain long-lived assets by country (comprised of fixed assets, net, water rights, net, energy contracts, net and other assets) as of December 31, 2017 and 2016 , were as follows: (In millions) 2017 2016 United States $ 790 $ 795 Foreign countries: Canada 1,143 1,259 South Korea — 8 1,143 1,267 $ 1,933 $ 2,062 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Note 21. Condensed Consolidating Financial Information The following information is presented in accordance with Rule 3-10 of Regulation S-X and the public information requirements of Rule 144 promulgated pursuant to the Securities Act, as amended, in connection with Resolute Forest Products Inc.’s 2023 Notes that are fully and unconditionally guaranteed, on a joint and several basis, by all of our 100% owned material U.S. subsidiaries (the “Guarantor Subsidiaries”). The 2023 Notes are not guaranteed by our foreign subsidiaries (the “Non-guarantor Subsidiaries”). The following condensed consolidating financial information sets forth the Statements of Operations and Comprehensive Loss for the years ended December 31, 2017 , 2016 and 2015 , the Balance Sheets as of December 31, 2017 and 2016 , and the Statements of Cash Flows for the years ended December 31, 2017 , 2016 and 2015 , for the Parent, the Guarantor Subsidiaries on a combined basis, and the Non-guarantor Subsidiaries also on a combined basis. The condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries and Non-guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-guarantor Subsidiaries, using the equity method of accounting. The principal consolidating adjustments are entries to eliminate the investments in subsidiaries and intercompany balances and transactions. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Year Ended December 31, 2017 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,849 $ 2,264 $ (1,600 ) $ 3,513 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,702 1,467 (1,595 ) 2,574 Depreciation and amortization — 74 130 — 204 Distribution costs — 159 291 (8 ) 442 Selling, general and administrative expenses 30 69 73 — 172 Closure costs, impairment and other related charges — 76 11 — 87 Net gain on disposition of assets — — (15 ) — (15 ) Operating (loss) income (30 ) (231 ) 307 3 49 Interest expense (95 ) (9 ) (13 ) 68 (49 ) Other income (expense), net — 76 (2 ) (68 ) 6 Equity in income of subsidiaries 41 43 — (84 ) — (Loss) income before income taxes (84 ) (121 ) 292 (81 ) 6 Income tax benefit (provision) — 2 (85 ) (1 ) (84 ) Net (loss) income including noncontrolling interests (84 ) (119 ) 207 (82 ) (78 ) Net income attributable to noncontrolling interests — — (6 ) — (6 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (84 ) $ (119 ) $ 201 $ (82 ) $ (84 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (109 ) $ (135 ) $ 192 $ (57 ) $ (109 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Year Ended December 31, 2016 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,907 $ 2,145 $ (1,507 ) $ 3,545 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,745 1,471 (1,500 ) 2,716 Depreciation and amortization — 78 128 — 206 Distribution costs — 168 273 (1 ) 440 Selling, general and administrative expenses 20 61 68 — 149 Closure costs, impairment and other related charges — 38 24 — 62 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (20 ) (183 ) 183 (6 ) (26 ) Interest expense (80 ) — (10 ) 52 (38 ) Other income, net — 57 2 (52 ) 7 Equity in income of subsidiaries 19 24 — (43 ) — (Loss) income before income taxes (81 ) (102 ) 175 (49 ) (57 ) Income tax provision — (11 ) (10 ) 2 (19 ) Net (loss) income including noncontrolling interests (81 ) (113 ) 165 (47 ) (76 ) Net income attributable to noncontrolling interests — — (5 ) — (5 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (81 ) $ (113 ) $ 160 $ (47 ) $ (81 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (249 ) $ (197 ) $ 73 $ 124 $ (249 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Year Ended December 31, 2015 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Sales $ — $ 2,975 $ 2,223 $ (1,553 ) $ 3,645 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,780 1,601 (1,555 ) 2,826 Depreciation and amortization — 93 144 — 237 Distribution costs — 168 293 (1 ) 460 Selling, general and administrative expenses 19 55 86 — 160 Closure costs, impairment and other related charges — 176 5 — 181 Operating (loss) income (19 ) (297 ) 94 3 (219 ) Interest expense (75 ) — (12 ) 46 (41 ) Other income, net — 37 13 (46 ) 4 Equity in (loss) income of subsidiaries (163 ) 20 — 143 — (Loss) income before income taxes (257 ) (240 ) 95 146 (256 ) Income tax benefit (provision) — 36 (34 ) (1 ) 1 Net (loss) income including noncontrolling interests (257 ) (204 ) 61 145 (255 ) Net income attributable to noncontrolling interests — — (2 ) — (2 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (257 ) $ (204 ) $ 59 $ 145 $ (257 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (126 ) $ (169 ) $ 155 $ 14 $ (126 ) CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 3 $ 3 $ — $ 6 Accounts receivable, net — 319 160 — 479 Accounts receivable from affiliates — 535 729 (1,264 ) — Inventories, net — 243 292 (9 ) 526 Note, advance and interest receivable from parent — 538 — (538 ) — Notes and interest receivable from affiliates — 32 — (32 ) — Other current assets — 16 17 — 33 Total current assets — 1,686 1,201 (1,843 ) 1,044 Fixed assets, net — 692 1,024 — 1,716 Amortizable intangible assets, net — 13 52 — 65 Goodwill — 81 — — 81 Deferred income tax assets — 1 1,073 2 1,076 Notes receivable from parent — 330 — (330 ) — Note receivable from affiliate — 116 — (116 ) — Investments in consolidated subsidiaries and affiliates 3,939 2,111 — (6,050 ) — Other assets — 98 67 — 165 Total assets $ 3,939 $ 5,128 $ 3,417 $ (8,337 ) $ 4,147 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 4 $ 171 $ 245 $ — $ 420 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 536 728 — (1,264 ) — Note, advance and interest payable to subsidiaries 538 — — (538 ) — Notes and interest payable to affiliate — — 32 (32 ) — Total current liabilities 1,078 900 277 (1,834 ) 421 Long-term debt, net of current portion 592 196 — — 788 Note payable to subsidiary 330 — — (330 ) — Note payable to affiliate — — 116 (116 ) — Pension and other postretirement benefit obligations — 378 879 — 1,257 Deferred income tax liabilities — — 13 — 13 Other liabilities 5 24 39 — 68 Total liabilities 2,005 1,498 1,324 (2,280 ) 2,547 Total equity 1,934 3,630 2,093 (6,057 ) 1,600 Total liabilities and equity $ 3,939 $ 5,128 $ 3,417 $ (8,337 ) $ 4,147 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2016 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 2 $ 33 $ — $ 35 Accounts receivable, net — 283 158 — 441 Accounts receivable from affiliates — 479 395 (874 ) — Inventories, net — 259 323 (12 ) 570 Note, advance and interest receivable from parent — 373 — (373 ) — Notes and interest receivable from affiliates — 54 — (54 ) — Other current assets — 16 19 — 35 Total current assets — 1,466 928 (1,313 ) 1,081 Fixed assets, net — 733 1,109 — 1,842 Amortizable intangible assets, net — 14 56 — 70 Goodwill — 81 — — 81 Deferred income tax assets — — 1,036 3 1,039 Note receivable from parent — 443 — (443 ) — Note receivable from affiliate — 109 — (109 ) — Investments in consolidated subsidiaries and affiliates 3,918 2,068 — (5,986 ) — Other assets — 62 102 — 164 Total assets $ 3,918 $ 4,976 $ 3,231 $ (7,848 ) $ 4,277 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 5 $ 222 $ 239 $ — $ 466 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 479 395 — (874 ) — Note, advance and interest payable to subsidiaries 373 — — (373 ) — Notes and interest payable to affiliate — — 54 (54 ) — Total current liabilities 857 618 293 (1,301 ) 467 Long-term debt, net of current portion 590 171 — — 761 Note payable to subsidiary 443 — — (443 ) — Note payable to affiliate — — 109 (109 ) — Pension and other postretirement benefit obligations — 397 884 — 1,281 Deferred income tax liabilities — 1 1 — 2 Other liabilities — 24 31 — 55 Total liabilities 1,890 1,211 1,318 (1,853 ) 2,566 Total equity 2,028 3,765 1,913 (5,995 ) 1,711 Total liabilities and equity $ 3,918 $ 4,976 $ 3,231 $ (7,848 ) $ 4,277 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2017 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by operating activities $ — $ 125 $ 33 $ — $ 158 Cash flows from investing activities: Cash invested in fixed assets — (116 ) (48 ) — (164 ) Disposition of assets — — 21 — 21 Increase in countervailing duty cash deposits on supercalendered paper — (22 ) — — (22 ) Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (26 ) — — (26 ) Increase in restricted cash, net — — (3 ) — (3 ) Decrease in deposit requirements for letters of credit, net — — 2 — 2 Decrease in notes receivable from affiliate, net — 22 — (22 ) — Net cash used in investing activities — (142 ) (28 ) (22 ) (192 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 19 — — 19 Acquisition of noncontrolling interest in Donohue Malbaie Inc. — — (15 ) — (15 ) Issuance of long-term debt — — — — — Payments of debt — (1 ) — — (1 ) Payments of financing and credit facility fees — — — — — Decrease in notes payable to affiliate, net — — (22 ) 22 — Net cash provided by (used in) financing activities — 18 (37 ) 22 3 Effect of exchange rate changes on cash and cash equivalents — — 2 — 2 Net increase (decrease) in cash and cash equivalents — 1 (30 ) — (29 ) Cash and cash equivalents: Beginning of year — 2 33 — 35 End of year $ — $ 3 $ 3 $ — $ 6 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2016 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by operating activities $ — $ 30 $ 51 $ — $ 81 Cash flows from investing activities: Cash invested in fixed assets — (179 ) (70 ) — (249 ) Acquisition of a sawmill in Senneterre — — (6 ) — (6 ) Disposition of assets — — 5 — 5 Increase in countervailing duty cash deposits on supercalendered paper — (23 ) — — (23 ) Increase in notes receivable from affiliate — (8 ) — 8 — Net cash used in investing activities — (210 ) (71 ) 8 (273 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 125 — — 125 Issuance of long-term debt — 46 — — 46 Payments of debt — (1 ) — — (1 ) Payments of financing and credit facility fees — (1 ) — — (1 ) Increase in notes payable to affiliate — — 8 (8 ) — Net cash provided by financing activities — 169 8 (8 ) 169 Effect of exchange rate changes on cash and cash equivalents — — — — — Net decrease in cash and cash equivalents — (11 ) (12 ) — (23 ) Cash and cash equivalents: Beginning of year — 13 45 — 58 End of year $ — $ 2 $ 33 $ — $ 35 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2015 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by (used in) operating activities $ — $ 151 $ (13 ) $ — $ 138 Cash flows from investing activities: Cash invested in fixed assets — (101 ) (84 ) — (185 ) Acquisition of Atlas Tissue, including cash overdraft acquired — (159 ) — — (159 ) Increase in countervailing duty cash deposits on supercalendered paper — (4 ) — — (4 ) Increase in deposit requirements for letters of credit, net — — (4 ) — (4 ) Investment in common stock of subsidiary — (234 ) — 234 — Advance to parent — (59 ) — 59 — Decrease of notes receivable from affiliates — 164 — (164 ) — Net cash used in investing activities — (393 ) (88 ) 129 (352 ) Cash flows from financing activities: Payments of financing and credit facility fees — (2 ) (1 ) — (3 ) Purchases of treasury stock (59 ) — — — (59 ) Issuance of common stock — — 234 (234 ) — Advance to subsidiary 59 — — (59 ) — Decrease in notes payable to affiliate — — (164 ) 164 — Net cash (used in) provided by financing activities — (2 ) 69 (129 ) (62 ) Effect of exchange rate changes on cash and cash equivalents — — (3 ) — (3 ) Net decrease in cash and cash equivalents — (244 ) (35 ) — (279 ) Cash and cash equivalents: Beginning of year — 257 80 — 337 End of year $ — $ 13 $ 45 $ — $ 58 |
Quarterly Information
Quarterly Information | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information | Note 22. Quarterly Information (Unaudited) Year ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Year (In millions, except per share amounts) Sales $ 872 $ 858 $ 885 $ 898 $ 3,513 Operating (loss) income (6 ) (47 ) 48 54 49 Net (loss) income attributable to Resolute Forest Products Inc. (47 ) (74 ) 24 13 (84 ) Basic net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.52 ) (0.82 ) 0.27 0.14 (0.93 ) Diluted net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.52 ) (0.82 ) 0.26 0.14 (0.93 ) Year ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Year (In millions, except per share amounts) Sales $ 877 $ 891 $ 888 $ 889 $ 3,545 Operating (loss) income — (18 ) 10 (18 ) (26 ) Net (loss) income attributable to Resolute Forest Products Inc. (8 ) (42 ) 14 (45 ) (81 ) Basic net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.09 ) (0.47 ) 0.16 (0.50 ) (0.90 ) Diluted net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.09 ) (0.47 ) 0.15 (0.50 ) (0.90 ) |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 23. Subsequent Event The following significant event occurred subsequent to December 31, 2017 : • On August 9, 2017, a countervailing and anti-dumping duty petition was filed with Commerce and the ITC by a U.S. UGW paper producer requesting that the U.S. government impose countervailing and anti-dumping duties on Canadian-origin UGW paper exported to the U.S. One of our subsidiaries was identified in the petition as being a Canadian exporting producer of UGW paper to the U.S. and was selected as a mandatory respondent to be investigated by Commerce in both the countervailing and anti-dumping duty investigations. On January 9, 2018, Commerce announced its preliminary determinations in its countervailing duty investigation on Canadian-origin UGW paper exported to the U.S. As a result, since January 16, 2018, we have been required to pay cash deposits to the U.S. at a rate of 4.42% for estimated countervailing duties on our U.S. imports of the UGW paper produced at our Canadian mills, with the exception of SC paper, which is subject to distinct countervailing duties, as further discussed in Note 16, “Commitments and Contingencies – Legal matters – Countervailing duty investigation on SC paper.” The rate and the requirement to pay cash deposits do not have retroactive effect. Commerce has not yet issued its preliminary determination in the anti-dumping investigation. The preliminary 4.42% rate can remain in effect for up to four months. If the ITC does not issue an affirmative material injury determination before the four -month period lapses, then we would not be required to pay deposits for countervailing duties on the affected UGW paper imports until the ITC makes an affirmative material injury determination. If as a result of such a determination Commerce imposes a countervailing duty order subjecting us to a countervailing duty deposit requirement on any of our affected UGW paper U.S. imports, then we would be required to resume making cash deposits at the rate set in the order until Commerce sets a countervailing duty rate in a subsequent administrative review. Based on the 4.42% rate and our current operating parameters, cash deposits on our imports of the affected UGW paper to the U.S. would be approximately $6 million for the initial four -month period, and as high as $20 million per year if the rate were to remain in effect continuously. We are not presently able to determine the ultimate resolution of this matter, but we believe it is not probable that we will ultimately be assessed with significant duties, if any, on our Canadian-produced UGW that is exported to the U.S. Accordingly, we do not expect this announcement to have a material impact on our results of operations. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Financial statements | Financial statements We have prepared our consolidated financial statements and the accompanying notes (“Consolidated Financial Statements”) in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All amounts are expressed in U.S. dollars, unless otherwise indicated. Certain prior period amounts in our footnotes have been reclassified to conform to the 2017 presentation. |
Consolidation | Consolidation Our Consolidated Financial Statements include the accounts of Resolute Forest Products Inc. and its controlled subsidiaries. All transactions and balances between these companies have been eliminated. |
Equity method investments | Equity method investments We account for our investments in affiliated companies where we have significant influence, but not control over their operations, using the equity method of accounting. |
Use of estimates | Use of estimates In preparing our Consolidated Financial Statements in accordance with U.S. GAAP, management is required to make accounting estimates based on assumptions, judgments, and projections of future results of operations and cash flows. These estimates and assumptions affect the reported amounts of revenues and expenses during the periods presented, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities as of the date of the financial statements. The most critical estimates relate to the assumptions underlying the benefit obligations of our pension and other postretirement benefit (“OPEB”) plans, the recoverability of deferred income tax assets, and the carrying values of our long-lived assets and goodwill. Estimates, assumptions, and judgments are based on a number of factors, including historical experience, recent events, existing conditions, internal budgets and forecasts, projections obtained from industry research firms, and other data that management believes are reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents generally consist of direct obligations of the U.S. and Canadian governments and their agencies, demand deposits, and other short-term, highly liquid securities with a maturity of three months or less from the date of purchase. |
Accounts receivable | Accounts receivable Accounts receivable are recorded at cost, net of an allowance for doubtful accounts that is based on expected collectibility, and such carrying value approximates fair value. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value using the average cost method. Cost includes labor, materials and production overhead, which is based on the normal capacity of our production facilities. Unallocated overhead, including production overhead associated with abnormal production levels, is recognized in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations when incurred. |
Fixed assets | Fixed assets Fixed assets acquired, including internal-use software, are stated at acquisition cost less accumulated depreciation and impairment. The cost of the fixed assets is reduced by any investment tax credits or government capital grants earned. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. We capitalize interest on borrowings during the construction period of major capital projects as part of the related asset and amortize the capitalized interest in “Depreciation and amortization” in our Consolidated Statements of Operations over the related asset’s remaining useful life. Planned major maintenance costs are recorded using the deferral method, whereby the costs of each planned major maintenance activity are capitalized to “Other current assets” or “Other assets” in our Consolidated Balance Sheets, and amortized to “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations on a straight-line basis over the estimated period until the next planned major maintenance activity. All other routine repair and maintenance costs are expensed as incurred. |
Environmental costs | Environmental costs We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. These costs are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. Expenditures that extend the life of the related property are capitalized. We determine our liability on a site-by-site basis and record a liability at the time it is probable and can be reasonably estimated. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable. |
Amortizable intangible assets | Amortizable intangible assets Amortizable intangible assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. |
Impairment of long-lived assets | Impairment of long-lived assets The unit of accounting for impairment testing for long-lived assets is its group, which includes fixed assets, net, amortizable intangible assets, net, and liabilities directly related to those assets (herein defined as “asset group”). For asset groups that are held and used, that group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other asset groups. For asset groups that are to be disposed of by sale or otherwise, that group represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value of an asset group may no longer be recoverable. The recoverability of an asset group that is held and used is tested by comparing the carrying value of the asset group to the sum of the estimated undiscounted future cash flows expected to be generated by that asset group. In estimating the undiscounted future cash flows, we use projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the asset group. If there are multiple plausible scenarios for the use and eventual disposition of an asset group, we assess the likelihood of each scenario occurring in order to determine a probability-weighted estimate of the undiscounted future cash flows. The principal assumptions include periods of operation, projections of product pricing, production levels and sales volumes, product costs, market supply and demand, foreign exchange rates, inflation, and projected capital spending. Changes in any of these assumptions could have a material effect on the estimated undiscounted future cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment loss is recognized in the amount that the asset group’s carrying value exceeds its fair value. The fair value of a long-lived asset group is determined in accordance with our accounting policy for fair value measurements, as discussed below. If it is determined that the carrying value of an asset group is recoverable, we review and adjust, as necessary, the estimated useful lives of the assets in the group. When an asset group meets the criteria for classification as an asset held for sale, an impairment charge is recognized, if necessary, based on the excess of the asset group’s carrying value over the expected net proceeds from the sale (the estimated fair value minus the estimated costs to sell). Asset groups to be disposed of other than by sale are classified as held and used until the asset group is disposed of or use of the asset group has ceased. |
Business Combination | Business combination We use the acquisition method in accounting for a business combination. Under this approach, identifiable assets acquired and liabilities assumed are recorded at their respective fair market values at the date of acquisition. Any amount of the purchase price paid that is in excess of the estimated fair values of net identifiable assets acquired is recorded in “Goodwill” in our Consolidated Balance Sheets. In determining the estimated fair values of identifiable assets acquired and liabilities assumed in a business combination, we use various recognized valuation methods such as present value modeling and referenced market values (where available). Valuations are performed by management or independent valuation specialists under management’s supervision, where appropriate. Transaction costs, as well as costs to integrate acquired companies, are expensed as incurred in our Consolidated Statements of Operations. |
Goodwill | Goodwill Goodwill is not amortized and is evaluated every year, or more frequently, whenever indicators of potential impairment exist. The impairment test of goodwill is performed at the reporting unit’s level. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount including goodwill. In performing the qualitative assessment, we identify the relevant drivers of fair value of a reporting unit and the relevant events and circumstances that may have an impact on those drivers of fair value. This process involves significant judgment and assumptions including the assessment of the results of the most recent fair value calculations, the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting us and the business, and making the assessment on whether each relevant factor will impact the impairment test positively or negatively, and the magnitude of any such impact. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then an impairment test is performed. We can also elect to bypass the qualitative assessment and proceed directly to the impairment test. The first step of an impairment test is to compare the fair value of a reporting unit to its carrying amount, including goodwill. Significant judgment is required to estimate the fair value of a reporting unit. Using the income method to determine the fair value of a reporting unit, we estimate the fair value of a reporting unit based on the present value of estimated future cash flows. The assumptions used in the model requires estimating future sales volumes, selling prices and costs, changes in working capital, investments in fixed assets, and the selection of the appropriate discount rate. The assumptions used are consistent with internal projections and operating plans. Unanticipated market and macroeconomic events and circumstances may occur and could affect the exactitude and validity of management assumptions and estimates. Sensitivities of these fair value estimates to changes in assumptions are also performed. In the event that the net carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized for the amount by which the reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit. Goodwill is assigned to the tissue segment for the purposes of impairment testing. |
Income taxes | Income taxes We use the asset and liability approach in accounting for income taxes. Under this approach, deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the carrying amounts in our Consolidated Financial Statements of existing assets and liabilities and their respective tax bases. This approach also requires the recording of deferred income tax assets related to operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates applicable when temporary differences and carryforwards are expected to be recovered or settled. We do not provide for the additional U.S. and foreign income taxes that would become payable upon remittance of undistributed earnings of foreign subsidiaries as we are evaluating the reinvestment of such earnings for the provision of the Tax Cuts and Jobs Act (“TCJA”). Valuation allowances are recognized to reduce deferred income tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results, and prudent and feasible tax planning strategies. Tax benefits related to uncertain tax positions are recorded when it is more likely than not, based on technical merits, that the position will be sustained upon examination by the relevant taxing authorities. The amount of tax benefit recognized may differ from the amount taken or expected to be taken on a tax return. These differences represent unrecognized tax benefits and are reviewed at each reporting period based on facts, circumstances and available evidence. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of the income tax expense. A policy election as to whether to recognize the newly enacted global intangible low-taxed income tax (“GILTI”) as a period cost or to recognize deferred taxes for its future effects will be made during the 12-month measurement period following the enactment of the TCJA, as further discussed in Note 15, “Income Taxes .” |
Pension and other postretirement benefit obligations | Pension and OPEB plans For our defined benefit plans, we recognize a liability or an asset for pension and OPEB obligations net of the fair value of plan assets. A liability is recognized for a plan’s under-funded status and an asset is recognized for a plan’s over-funded status. Changes in the funding status that have not been recognized in our net periodic benefit cost are reflected as an adjustment to our “ Accumulated other comprehensive loss ” in our Consolidated Balance Sheets. We recognize net periodic benefit cost or credit as employees render the services necessary to earn the pension and OPEB. Amounts we contribute to our defined contribution plans are expensed as incurred. |
Fair value measurements | Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date, and is based on any principal market for the specific asset or liability. We consider the risk of non-performance of the obligor, which in some cases reflects our own credit risk, in determining fair value. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” we categorize assets and liabilities measured at fair value (other than those measured at net asset value (“NAV”) per share, or its equivalent) into one of three different levels depending on the observability of the inputs employed in the measurement. This fair value hierarchy is as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2 - Valuations based on observable inputs, other than Level 1 prices, such as quoted interest or currency exchange rates. Level 3 - Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used in the determination of fair value of our assets and liabilities, when required, maximize the use of observable inputs and minimize the use of unobservable inputs. |
Share-based compensation | Share-based compensation We recognize the cost of our share-based compensation over the requisite service period using the straight-line attribution approach, based on the grant date fair value for equity-based awards, and based on the quoted market value at the end of each reporting period for liability-based awards. The requisite service period is reduced for those employees who are retirement eligible at the date of the grant or who will become retirement eligible during the vesting period and who will be entitled to continue vesting in their entire award upon retirement. For equity-based awards, the fair value of stock options is determined using a Black-Scholes option pricing formula, and the fair value of restricted stock units (“RSUs”), deferred stock units (“DSUs”) and performance stock units (“PSUs”) is determined based on the market price of a share of our common stock on the grant date. Liability-based awards, consisting of RSUs, DSUs, and PSUs, are initially measured based on the market price of a share of our common stock on the grant date and remeasured at the end of each reporting period, until settlement. We estimate forfeitures of stock incentive awards (as defined in Note 18, “Share-Based Compensation ”) and performance adjustments for our PSUs based on historical experience and recognize compensation cost only for those awards expected to vest. Estimated forfeitures and performance adjustments are updated to reflect new information or actual experience, as it becomes available. |
Revenue recognition | Revenue recognition Pulp, tissue, paper and wood products are delivered to our customers in the United States and Canada directly from our mills by either truck or rail. Pulp and paper products delivered to our international customers by ship are sold with international shipping terms. Revenue is recorded when risk of loss and title of the product passes to the customer. For sales with the terms free on board (“FOB”) shipping point, revenue is recorded when the product leaves the mill, whereas for sales transactions FOB destination, revenue is recorded when the product is delivered to the customer’s delivery site. Sales are reported net of allowances and rebates, and the following criteria must be met before they are recognized: persuasive evidence of an arrangement exists, delivery has occurred and we have no remaining obligations, prices are fixed or determinable, and collectibility is reasonably assured. Sales of our other products (green power produced from renewable sources, wood chips, and other wood related products) are recognized when the products are delivered and are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. |
Net (loss) income per share | Net loss per share We calculate basic net loss per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net loss by the basic weighted-average number of outstanding common shares. We calculate diluted net income per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net income by the basic weighted-average number of outstanding common shares, as adjusted for dilutive potential common shares using the treasury-stock method. Potentially dilutive common shares consist of outstanding stock options, RSUs, DSUs and PSUs. To calculate diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders, no adjustments to our basic weighted-average number of outstanding common shares are made, since the impact of potentially dilutive common shares would be antidilutive. |
Translation | Translation The functional currency of the majority of our operations is the U.S. dollar. Non-monetary assets and liabilities denominated in foreign currencies of these operations and the related income and expense items such as depreciation and amortization are remeasured into U.S. dollars using historical exchange rates. Remaining assets and liabilities are remeasured into U.S. dollars using the exchange rate as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using a daily or monthly average exchange rate for the period. Gains and losses from foreign currency transactions and from remeasurement of the balance sheet are reported in “ Other income, net ” in our Consolidated Statements of Operations. The functional currency of our other operations is their local currency. Assets and liabilities of these operations are translated into U.S. dollars at the exchange rate in effect as of the balance sheet date. Income and expense items are translated using a daily or monthly average exchange rate for the period. The resulting translation gains or losses are recognized as a component of equity in “ Accumulated other comprehensive loss .” |
Distribution costs | Distribution costs Distribution costs represent costs associated with handling finished goods and shipping products to customers. Such costs are included in “Distribution costs” in our Consolidated Statements of Operations. |
New accounting pronouncements | New accounting pronouncements adopted as of December 31, 2017 In October 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory,” which eliminates the deferral of the tax effects of intra-entity asset transfers other than inventory until the transferred assets are sold to a third party or recovered through use. This update is effective on a modified retrospective approach for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. As early adoption is permitted as of the beginning of an annual period, we adopted this ASU on January 1, 2017. For additional information, see Note 15, “Income Taxes .” In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other” which eliminates the need to determine a hypothetical purchase price allocation comprised of the fair value of individual assets and liabilities of a reporting unit to measure any goodwill impairment. With this new standard, an impairment loss will be recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit. These updates are effective for fiscal years beginning after December 15, 2019. As early adoption is permitted, for annual and interim goodwill impairment tests after January 1, 2017, we adopted this ASU concurrently with our 2017 annual goodwill impairment test. The adoption of this accounting guidance did not materially impact our results of operations or financial position. Accounting pronouncements not yet adopted as of December 31, 2017 In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not have a material impact on our results of operations, financial position or cash flows. In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to recognize leases on the balance sheet while continuing to recognize expenses in the income statement in a manner similar to current accounting standards. For lessors, the new standard modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. We plan to adopt this standard on January 1, 2019. We are still evaluating the impact of this standard on our results of operations and financial position as implementation of this project is at the assessment stage. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts from Customers,” which provides a framework that replaces existing revenue recognition guidance in GAAP. In March 2016, April 2016, May 2016, December 2016, and November 2017, the FASB also issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Identifying Performance Obligations and Licensing,” ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” and ASU 2017-14, “Reporting Comprehensive Income, Revenue Recognition and Revenue from Contracts with Customers, (SEC Update),” respectively, which further affect the guidance of ASU 2014-09. These updates are effective for fiscal years beginning after December 15, 2017. We are finalizing our assessment of the impact of these standards on our Consolidated Financial Statements. Our current assessment is subject to change as we continue our analysis; however, we do not currently expect that the adoption of the new revenue standard will have a material impact on our revenues, results of operations or financial position. Our findings to-date are as follows: • The majority of our revenue arises from contracts with customers in which the sale of goods is generally expected to be the main performance obligation. Accordingly, we expect to recognize revenue for most of our revenue streams at a point in time when control of the asset is transferred to the customer, generally upon delivery of the goods. Based on our review of our contracts with customers, the timing and amount of revenue recognized under ASU 2014-09 is expected to be consistent with our current practice. • Certain of our contracts with customers provide incentive offerings, including special pricing agreements, and other volume-based incentives. Currently, we recognize revenue from the sale of goods measured at the fair value of the consideration received or receivable, net of provisions for customer incentives. If revenue cannot be reliably measured, revenue recognition is deferred until the uncertainty is resolved. Such contract provisions give rise to variable consideration under ASU 2014-09, and will be required to be estimated at contract inception. ASU 2014-09 requires the estimated variable consideration to be constrained to prevent the over-recognition of revenue. Based on our assessment of individual contracts, the amount of revenue recognized under ASU 2014-09, after consideration of the estimated variable consideration and related constraint, is expected to be consistent with our current practice. ASU 2014-09 also provides presentation and disclosure requirements, which are more detailed than under current GAAP. New requirements include disaggregation of revenue depicting how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors, information about the nature and timing of performance obligations, as well as significant judgments made and practical expedients used. The disaggregated revenue information required to be disclosed is expected to be similar to the information currently included in Note 20, “Segment Information .” We adopted these standards effective January 1, 2018, using the modified retrospective approach and are in the process of identifying and implementing the appropriate changes in processes and internal controls to support revenue recognition and disclosure under the new standard. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which introduces the current expected credit losses model in the estimation of credit losses on financial instruments. This update is effective retrospectively for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. We plan to adopt this ASU on January 1, 2020. We are still evaluating the impact of this accounting guidance on our results of operations and financial position as implementation of this project is at the assessment stage. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. All amendments to the guidance shall be adopted in the same period on a retrospective basis. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not materially impact the presentation of our cash flows. In November 2016, the FASB issued ASU 2016-18, “Restricted Cash,” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance will impact the presentation of our Consolidated Statements of Cash Flows. Restricted cash included in our Consolidated Balance Sheet was $43 million and $38 million as of December 31, 2017, and 2016, respectively. In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets,” which clarifies the scope of Subtopic 610-20, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets” and adds guidance for partial sales of nonfinancial assets. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not materially impact our results of operations, financial position or cash flows. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires employers that present a measure of operating income in their statements of earnings to disaggregate and present only the service cost component of net periodic benefit pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs arising during the period). The other components of the net periodic benefit cost and net periodic postretirement benefit cost are to be reported separately outside any subtotal of operating income. This update is effective retrospectively for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this ASU on January 1, 2018. As a result, estimated net periodic benefit credits of $55 million for the year ended December 31, 2018, will be reported outside of operating income in our results of operations. Net periodic benefit credits or costs, excluding the service cost component, were credits of $7 million for the year ended December 31, 2017, and costs of $8 million and $50 million for the years ended December 31, 2016 and 2015, respectively. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”, allowing an election to reclassify from accumulated other comprehensive income to retained earnings stranded income tax effects resulting from the TCJA. This update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years and should be applied either in the period of adoption or retrospectively to each period in which the effect of the TCJA is recognized. Early adoption is permitted, including adoption in any interim period, for which financial statements have not yet been issued. We are still evaluating the impact of this accounting guidance on our results of operations and financial position. |
Organization and Basis of Pre34
Organization and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of less than wholly-owned consolidated subsidiaries | All consolidated subsidiaries are wholly-owned as of December 31, 2017 , with the exception of the following: Consolidated Subsidiary Resolute Forest Products Ownership Partner Partner Ownership Forest Products Mauricie L.P. 93.2% Coopérative Forestière du Haut Saint-Maurice 6.8% |
Acquisition of Atlas Inc. Acqui
Acquisition of Atlas Inc. Acquisition of Atlas Inc. (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Pro Forma Information | The following unaudited pro forma information for the year ended December 31, 2015 represents our results of operations as if the acquisition of Atlas Tissue had occurred on January 1, 2015. This pro forma information does not purport to be indicative of the results that would have occurred for the period presented or that may be expected in the future. (Unaudited, in millions except per share data) 2015 Sales $ 3,730 Net loss attributable to Resolute Forest Products Inc. (261 ) Basic net loss per share attributable to Resolute Forest Products Inc. (2.82 ) Diluted net loss per share attributable to Resolute Forest Products Inc. (2.82 ) |
Closure Costs, Impairment and36
Closure Costs, Impairment and Other Related Charges (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Closure Costs, Impairment and Other Related Charges | Closure costs, impairment and other related charges for the year ended December 31, 2017 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Pension and OPEB Plan Curtailments and Other Severance and Other Costs Total Pulp mill in Coosa Pines (Alabama) (1) $ 55 $ — $ — $ — $ 55 Permanent closures Paper machine in Catawba (South Carolina) 5 — 2 4 11 Paper machines in Calhoun (Tennessee) — 6 3 2 11 Paper mill in Mokpo (South Korea) — — — 7 7 Other — — — 3 3 $ 60 $ 6 $ 5 $ 16 $ 87 (1) As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the year ended December 31, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. Closure costs, impairment and other related charges for the year ended December 31, 2016 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Severance and Other Costs Total Paper mill in Mokpo (1) $ 13 $ — $ — $ 13 Permanent closure Paper machine in Augusta (Georgia) — 32 4 36 Other 9 3 1 13 $ 22 $ 35 $ 5 $ 62 (1) Due to declining market conditions and rising recycled fiber prices, we recorded long-lived asset impairment charges of $13 million for the year ended December 31, 2016, to reduce the carrying value of the assets to fair value. Management estimated fair value using the market approach, by reference to transactions on comparable assets adjusted for additional risks and uncertainties associated with the deteriorating market environment, as well as increased competition in Asia. The fair value measurement is considered a level 3 measurement due to the significance of its unobservable inputs. In 2017, we announced the permanent closure of our Mokpo paper mill effective March 9, 2017. Closure costs, impairment and other related charges for the year ended December 31, 2015 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Severance and Other Costs Total Paper mill in Catawba (1) $ 176 $ — $ — $ 176 Permanent closures Paper mill in Iroquois Falls (Ontario) — — 3 3 Paper machine in Clermont (Quebec) — 2 — 2 $ 176 $ 2 $ 3 $ 181 (1) As a result of declining market conditions, we recorded long-lived asset impairment charges of $176 million for the year ended December 31, 2015, related to our Catawba paper assets, to reduce the carrying value of the assets to fair value. Management estimated the fair value using the income approach. Projected discounted cash flows utilized under the income approach included estimates regarding future revenues and expenses attributable to the Catawba paper activities, projected capital expenditures and a discount rate of 12% . This fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income, net for the years ended December 31, 2017 , 2016 and 2015 , was comprised of the following: (In millions) 2017 2016 2015 Foreign exchange gain (loss) $ 9 $ (7 ) $ (4 ) Gain on disposition of equity method investment (1) — 5 — Miscellaneous (expense) income (3 ) 9 8 $ 6 $ 7 $ 4 (1) On February 1, 2016, we sold for total consideration of $5 million our interest in Produits Forestiers Petit-Paris Inc., an unconsolidated entity located in Saint-Ludger-de-Milot (Quebec), in which we had a 50% interest, resulting in a gain on disposition of $5 million . |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) | The change in our accumulated other comprehensive loss by component (net of tax) for the year ended December 31, 2017 , was as follows: (In millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2016 $ 67 $ (819 ) $ (3 ) $ (755 ) Other comprehensive income (loss) before reclassifications 1 (48 ) (3 ) (50 ) Amounts reclassified from accumulated other comprehensive loss (1) (16 ) 41 — 25 Net current period other comprehensive loss (15 ) (7 ) (3 ) (25 ) Balance as of December 31, 2017 $ 52 $ (826 ) $ (6 ) $ (780 ) (1) See the table below for details about these reclassifications. |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive loss for the year ended December 31, 2017 , were comprised of the following: (In millions) Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Credits Amortization of prior service credits $ (15 ) Cost of sales, excluding depreciation, amortization and distribution costs (1) Curtailment gain (1 ) Closure costs, impairment and other related charges (1) — Income tax (provision) benefit $ (16 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 50 Cost of sales, excluding depreciation, amortization and distribution costs (1) Curtailment loss 1 Closure costs, impairment and other related charges (1) Settlement loss 1 Cost of sales, excluding depreciation, amortization and distribution costs (1) (11 ) Income tax (provision) benefit $ 41 Net of tax Total Reclassifications $ 25 Net of tax (1) These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 14, “Pension and Other Postretirement Benefit Plans .” |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The reconciliation of the basic and diluted net loss per share for the years ended December 31, 2017 , 2016 and 2015 , was as follows: (In millions) 2017 2016 2015 Numerator: Net loss attributable to Resolute Forest Products Inc. $ (84 ) $ (81 ) $ (257 ) Denominator: Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding 90.5 89.9 92.4 Dilutive impact of nonvested stock incentive awards — — — Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 90.5 89.9 92.4 Net loss per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ (0.93 ) $ (0.90 ) $ (2.78 ) Diluted $ (0.93 ) $ (0.90 ) $ (2.78 ) |
Schedule of outstanding weighted-average stock options and nonvested equity-classified RSUs, DSUs and PSUs | The weighted-average number of outstanding stock options and nonvested equity-classified RSUs, DSUs and PSUs (collectively, “stock unit awards”) that were excluded from the calculation of diluted net loss per share, as the impact would have been antidilutive, for the years ended December 31, 2017 , 2016 and 2015 , was as follows: (In millions) 2017 2016 2015 Stock options 1.4 1.4 1.5 Stock unit awards 4.1 2.6 1.4 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, net as of December 31, 2017 and 2016 , were comprised of the following: (In millions) 2017 2016 Raw materials $ 108 $ 126 Work in process 38 45 Finished goods 175 183 Mill stores and other supplies 205 216 $ 526 $ 570 |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Fixed assets, net as of December 31, 2017 and 2016 , were comprised of the following: (Dollars in millions) Estimated Useful Lives (Years) 2017 2016 Land and land improvements 5 – 20 $ 56 $ 77 Buildings 2 – 40 298 257 Machinery and equipment (1) 5 – 25 2,544 2,264 Hydroelectric power plants 10 – 40 292 287 Timberlands and timberlands improvements 3 – 20 110 109 Construction in progress (1) 30 263 3,330 3,257 Less: Accumulated depreciation (1,614 ) (1,415 ) $ 1,716 $ 1,842 (1) Internal-use software included in fixed assets, net as of December 31, 2017 and 2016 , was as follows: (In millions) 2017 2016 Machinery and equipment $ 111 $ 83 Construction in progress — 13 111 96 Less: Accumulated depreciation (42 ) (27 ) $ 69 $ 69 Depreciation expense related to internal-use software is estimated to be $16 million for each of the next two years, $12 million from 2020 to 2021, and $8 million in 2022. |
Amortizable Intangible Assets42
Amortizable Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Summary of Amortizable Intangible Assets, Net | Amortizable intangible assets, net as of December 31, 2017 and 2016 , were comprised of the following: 2017 2016 (Dollars in millions) Estimated Useful Lives (Years) Gross Accumulated Net Gross Accumulated Net Water rights (1) 10 – 40 $ 19 $ 5 $ 14 $ 19 $ 4 $ 15 Energy contracts 15 – 25 52 14 38 52 11 41 Customer relationships 10 – 15 14 2 12 14 1 13 Other 1 — 1 1 — 1 $ 86 $ 21 $ 65 $ 86 $ 16 $ 70 (1) In order to operate our hydroelectric generation and transmission network, we draw water from various rivers in Quebec. For some of our facilities, the use of such government-owned waters is governed by water power leases or agreements with the province of Quebec, which set out the terms, conditions, and fees (as applicable). Terms of these agreements typically range from 10 to 25 years and are generally renewable, under certain conditions. In some cases, the agreements are contingent on the continued operation of the related paper mills and a minimum level of capital spending in the region. For our other facilities, the right to generate hydroelectricity stems from our ownership of the riverbed on which these facilities are located. |
Accounts Payable and Accrued 43
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities as of December 31, 2017 and 2016 , were comprised of the following: (In millions) 2017 2016 Trade accounts payable $ 306 $ 346 Payroll, bonuses and severance payable 55 51 Accrued interest 5 5 Pension and other postretirement benefit obligations 18 17 Book overdrafts — 13 Income and other taxes payable 10 7 Environmental liabilities 2 5 Other 24 22 $ 420 $ 466 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Including Current Portion | Long-term debt, including current portion, as of December 31, 2017 and 2016 , was comprised of the following: (In millions) 2017 2016 5.875% senior notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (5 ) (6 ) Unamortized discount (3 ) (4 ) Total senior notes due 2023 592 590 Term loan due 2025 46 46 Borrowings under revolving credit facilities 144 125 Capital lease obligation 7 1 Total debt 789 762 Less: Current portion of long-term debt (1 ) (1 ) Long-term debt, net of current portion $ 788 $ 761 |
Debt Redemption Schedule | he 2023 Notes are redeemable, in whole or in part, since May 15, 2017, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: Year (beginning May 15) Redemption Price 2017 104.406% 2018 102.938% 2019 101.469% 2020 and thereafter 100.000% |
Pension and Other Postretirem45
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Summary of Changes in Benefit Obligations | Pension Plans OPEB Plans (In millions) 2017 2016 2017 2016 Change in benefit obligations: Benefit obligations as of beginning of year $ 5,196 $ 5,068 $ 172 $ 174 Service cost 19 20 1 1 Interest cost 199 215 7 7 Actuarial loss (gain) 156 169 (7 ) — Participant contributions 7 8 2 2 Plan amendment — 1 (1 ) — Special termination benefits 5 — — — Curtailments 1 — 4 — Settlements (29 ) (28 ) — — Benefits paid (365 ) (380 ) (13 ) (15 ) Effect of foreign currency exchange rate changes 285 123 7 3 Benefit obligations as of end of year 5,474 5,196 172 172 |
Summary of Change in Plan Assets | Change in plan assets: Fair value of plan assets as of beginning of year 4,073 4,049 — — Actual return on plan assets 346 184 — — Employer contributions 111 141 11 13 Participant contributions 7 8 2 2 Settlements (29 ) (28 ) — — Benefits paid (365 ) (380 ) (13 ) (15 ) Effect of foreign currency exchange rate changes 234 99 — — Fair value of plan assets as of end of year 4,377 4,073 — — Funded status as of end of year $ (1,097 ) $ (1,123 ) $ (172 ) $ (172 ) |
Summary of Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in our Consolidated Balance Sheets consisted of: Other assets $ 6 $ 3 $ — $ — Accounts payable and accrued liabilities (3 ) (3 ) (15 ) (14 ) Pension and OPEB obligations (1,100 ) (1,123 ) (157 ) (158 ) Net obligations recognized $ (1,097 ) $ (1,123 ) $ (172 ) $ (172 ) |
Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans | The components of net periodic benefit cost relating to our pension and OPEB plans for the years ended December 31, 2017 , 2016 and 2015 , were as follows: Pension Plans OPEB Plans (In millions) 2017 2016 2015 2017 2016 2015 Service cost $ 19 $ 20 $ 23 $ 1 $ 1 $ 1 Interest cost 199 215 225 7 7 8 Expected return on plan assets (254 ) (247 ) (260 ) — — — Amortization of prior service credits (1 ) (1 ) (2 ) (14 ) (15 ) (14 ) Amortization of actuarial losses (gains) 55 54 84 (5 ) (5 ) (5 ) Net periodic benefit cost before special events 18 41 70 (11 ) (12 ) (10 ) Curtailments, settlements and other losses 7 — 14 (1 ) — — $ 25 $ 41 $ 84 $ (12 ) $ (12 ) $ (10 ) |
Weighted-Average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost | The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net periodic benefit cost for the years ended December 31, 2017 , 2016 and 2015 , were as follows: Pension Plans OPEB Plans 2017 2016 2015 2017 2016 2015 Benefit obligations: Discount rate 3.6 % 3.8 % 4.2 % 3.6 % 3.9 % 4.4 % Rate of compensation increase 2.1 % 2.5 % 2.5 % Net periodic benefit cost: Discount rate 3.8 % 4.2 % 4.0 % 3.9 % 4.4 % 4.1 % Expected return on assets 6.3 % 6.2 % 6.3 % Rate of compensation increase 2.5 % 2.5 % 2.5 % |
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations | The assumed health care cost trend rates used to determine the benefit obligations for our domestic and foreign OPEB plans as of December 31, 2017 and 2016 , were as follows: 2017 2016 Domestic Plans Foreign Plans Domestic Plans Foreign Plans Health care cost trend rate assumed for next year 7.2 % 4.8 % 7.0 % 4.2 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.5 % 4.5 % 4.5 % 4.0 % Year that the rate reaches the ultimate trend rate 2030 2028 2028 2028 |
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate | Variations of the health care cost trend rate can have a significant effect on the amounts reported. A 1% change in this assumption would have had the following impact on our 2017 OPEB obligation and costs for our domestic and foreign plans: 1% Increase 1% Decrease (In millions, except percentages) Domestic Plans Foreign Plans Domestic Plans Foreign Plans OPEB obligation $ 3 5 % $ 5 5 % $ (3 ) (4 )% $ (5 ) (4 )% Service and interest costs $ — 7 % $ — 6 % $ — (6 )% $ — (5 )% |
Fair Value of Plan Assets Held by Pension Plans | The fair value of plan assets held by our pension plans as of December 31, 2017 , was as follows: (In millions) Total Level 1 Level 2 Equity securities: U.S. companies $ 882 $ 882 $ — Non-U.S. companies 1,132 1,132 — Debt securities: Corporate and government securities 1,244 126 1,118 Asset-backed securities 275 — 275 Cash and cash equivalents 169 166 3 Other plan liabilities, net (2 ) — (2 ) Total before investments measured at NAV $ 3,700 $ 2,306 $ 1,394 Investments measured at NAV 677 $ 4,377 The fair value of plan assets held by our pension plans as of December 31, 2016 , was as follows: (In millions) Total Level 1 Level 2 Equity securities: U.S. companies $ 865 $ 865 $ — Non-U.S. companies 889 889 — Debt securities: Corporate and government securities 1,281 163 1,118 Asset-backed securities 71 — 71 Cash and cash equivalents 330 330 — Other plan assets, net 35 — 35 Total before investments measured at NAV $ 3,471 $ 2,247 $ 1,224 Investments measured at NAV 602 $ 4,073 |
Expected Benefit Payments and Future Contributions | As of December 31, 2017 , benefit payments expected to be paid over the next 10 years are as follows: (In millions) Pension Plans (1) OPEB Plans 2018 $ 380 $ 15 2019 372 14 2020 367 14 2021 363 13 2022 357 13 2023 - 2027 1,694 60 (1) Benefit payments are expected be paid from the plans’ net assets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Taxes by Taxing Jurisdiction | (Loss) income before income taxes by taxing jurisdiction for the years ended December 31, 2017 , 2016 and 2015 , was as follows: (In millions) 2017 2016 2015 United States $ (289 ) $ (227 ) $ (355 ) Foreign 295 170 99 $ 6 $ (57 ) $ (256 ) |
Income Tax (Provision) Benefit | The income tax (provision) benefit for the years ended December 31, 2017 , 2016 and 2015 , was comprised of the following: (In millions) 2017 2016 2015 U.S. Federal and State: Current $ — $ — $ 4 Deferred 2 (11 ) 32 2 (11 ) 36 Foreign: Current (4 ) (5 ) — Deferred (82 ) (3 ) (35 ) (86 ) (8 ) (35 ) Total: Current (4 ) (5 ) 4 Deferred (80 ) (14 ) (3 ) $ (84 ) $ (19 ) $ 1 |
Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) | The income tax (provision) benefit attributable to income (loss) before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 35% for the years ended December 31, 2017 , 2016 and 2015 , as a result of the following: (In millions) 2017 2016 2015 Income (loss) before income taxes $ 6 $ (57 ) $ (256 ) Income tax (provision) benefit: Expected income tax (provision) benefit (2 ) 20 90 Changes resulting from: Valuation allowance (1) 247 (99 ) (109 ) Enactment of change in tax rate (2) (368 ) — — Adjustments for unrecognized tax benefits (3) 1 55 — Foreign exchange 6 (9 ) (20 ) Research and development, and other tax incentives 1 — 1 State income taxes, net of federal income tax benefit 10 6 12 Foreign tax rate differences 23 11 8 Effect of change in tax rates (4) — — 18 Other, net (2 ) (3 ) 1 $ (84 ) $ (19 ) $ 1 (1) During 2017, we recorded a decrease in our valuation allowance of $359 million , due to the enactment of the TCJA, offset by an increase of $112 million , primarily related to our U.S. operations where we recognize a valuation allowance against virtually all of our net deferred income tax assets. During 2016 and 2015, we recorded a valuation allowance of $99 million and $109 million , respectively, mainly related to our U.S. operations where we recognized a full valuation allowance against our net deferred income tax assets. (2) During 2017, we recorded decreases to our net deferred income tax assets of $356 million due to the enactment of the TCJA, and $12 million due to a lower foreign income tax rate. (3) During 2016, we recorded tax benefits of $55 million , almost all of which related to the release of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. (4) During 2015, we recorded an income tax benefit of $18 million as a result of a change in tax rates on deferred income taxes, primarily due to an intercompany asset transfer in connection with an operating company realignment. |
Deferred Income Taxes | Deferred income taxes as of December 31, 2017 and 2016 , were comprised of the following: (In millions) 2017 2016 Fixed assets $ (4 ) $ (44 ) Other liabilities (23 ) (21 ) Deferred income tax liabilities (27 ) (65 ) Fixed assets 506 520 Pension and OPEB plans 330 392 Operating loss carryforwards 619 838 Capital loss carryforwards 12 11 Undeducted research and development expenditures 196 185 Tax credit carryforwards 119 107 Other assets 72 49 Deferred income tax assets 1,854 2,102 Valuation allowance (764 ) (1,000 ) Net deferred income tax assets $ 1,063 $ 1,037 Amounts recognized in our Consolidated Balance Sheets consisted of: Deferred income tax assets $ 1,076 $ 1,039 Deferred income tax liabilities (13 ) (2 ) Net deferred income tax assets $ 1,063 $ 1,037 |
Balance of Tax Attributes and Their Dates of Expiration | The balance of tax attributes and their dates of expiration as of December 31, 2017 , were as follows: (In millions) Related Year of Expiration Operating loss carryforwards: U.S. federal operating loss carryforwards of $2,218 $ 466 (1 ) 2022 – 2037 U.S. state operating loss carryforwards of $1,868 95 (1 ) 2021 – 2037 Canadian federal and provincial (excluding Quebec) operating loss carryforwards of $73 18 2030 – 2037 Other operating loss carryforwards 40 2019 – 2027 $ 619 Capital loss carryforwards: Canadian net capital loss carryforwards of $43 12 Indefinite $ 12 Undeducted research and development expenditures: Canadian federal and provincial (excluding Quebec) undeducted research and development expenditures of $694 $ 116 Indefinite Quebec undeducted research and development expenditures of $837 80 Indefinite $ 196 Tax credit carryforwards: Canadian research and development tax credit carryforwards $ 96 2021 – 2037 U.S. state and other tax credit carryforwards 23 (1 ) 2018 – 2032 $ 119 (1) As of December 31, 2017 , we had a valuation allowance against virtually all of our U.S. operations net deferred income tax assets. |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2017 and 2016 : (In millions) 2017 2016 Beginning of year $ 44 $ 97 Increase (decrease) in unrecognized tax benefits resulting from: Enactment of change in tax rate (1) (15 ) — Positions taken in the current period — 1 Expirations of statute limitations (2) — (55 ) Settlements with taxing authorities (1 ) (1 ) Change in foreign exchange rate — 2 End of year $ 28 $ 44 (1) During 2017, previously unrecognized tax benefits decreased by $15 million due to the enactment of the TCJA. (2) During 2016, we released $55 million of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options Activity | The activity of outstanding stock options for the year ended December 31, 2017 , was as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Contractual Life (years) Balance as of December 31, 2016 1,415,971 $ 15.77 5.8 Forfeited (2,774 ) 15.66 Expired (108,656 ) 14.09 Balance as of December 31, 2017 1,304,541 $ 15.90 4.8 Exercisable as of December 31, 2017 1,304,541 $ 15.90 4.8 |
RSU and DSU Activity | The activity of nonvested RSUs and DSUs for the year ended December 31, 2017 , was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2016 2,554,639 $ 6.20 Granted 434,022 7.34 Vested (909,575 ) 7.36 Forfeited (97,664 ) 5.28 Balance as of December 31, 2017 (1) 1,981,422 $ 5.96 (1) Includes 17,161 liability-based awards. |
PSU Activity | The activity of nonvested PSUs for the year ended December 31, 2017 , was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2016 2,345,420 $ 6.71 Granted 295,455 8.63 Forfeited (49,479 ) 5.67 Balance as of December 31, 2017 (1) 2,591,396 $ 6.94 (1) Includes 387,294 liability-based awards. |
Operating Leases and Purchase48
Operating Leases and Purchase Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases and Commitments for Purchase Obligations | As of December 31, 2017 , the commitments for purchase obligations and future minimum rental payments under operating leases were as follows: (In millions) Purchase Obligations (1) Operating Leases 2018 $ 81 $ 7 2019 54 6 2020 54 6 2021 45 5 2022 4 3 Thereafter 30 8 $ 268 $ 35 (1) Includes energy purchase obligations of $209 million through 2022 for certain of our pulp and paper mills. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about certain segment data for the years ended December 31, 2017 , 2016 and 2015 , was as follows: (In millions) Market Pulp (1) Tissue (2) Wood Products (3) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales 2017 $ 911 $ 81 $ 797 $ 842 $ 882 $ 3,513 $ — $ 3,513 2016 836 89 596 1,009 1,015 3,545 — 3,545 2015 889 11 536 1,105 1,104 3,645 — 3,645 Depreciation and amortization 2017 $ 31 $ 5 $ 33 $ 66 $ 45 $ 180 $ 24 $ 204 2016 37 5 31 74 45 192 14 206 2015 53 1 37 64 71 226 11 237 Operating income (loss) 2017 $ 79 $ (6 ) $ 186 $ (23 ) $ (9 ) $ 227 $ (178 ) $ 49 2016 37 (10 ) 69 (16 ) 19 99 (125 ) (26 ) 2015 71 (1 ) 2 (25 ) 23 70 (289 ) (219 ) Capital expenditures 2017 $ 12 $ 101 $ 9 $ 6 $ 20 $ 148 $ 16 $ 164 2016 20 156 23 2 23 224 25 249 2015 60 41 43 10 13 167 18 185 (1) Inter-segment sales of $36 million , $33 million and $20 million , which are transacted at cost, were excluded from market pulp sales for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) Tissue capital expenditures consisted almost entirely of expenditures for the tissue manufacturing and converting facility in Calhoun. (3) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $20 million , $17 million and $20 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Summary of Sales by Country | Sales by country for the years ended December 31, 2017 , 2016 and 2015 , were as follows: (In millions) 2017 2016 2015 United States $ 2,387 $ 2,464 $ 2,421 Foreign countries: Canada 517 428 476 Mexico 126 126 150 Other countries 483 527 598 1,126 1,081 1,224 $ 3,513 $ 3,545 $ 3,645 |
Summary of Long-Lived Assets, Excluding Intangible Assets and Deferred Income Tax Assets, by Country | Certain long-lived assets by country (comprised of fixed assets, net, water rights, net, energy contracts, net and other assets) as of December 31, 2017 and 2016 , were as follows: (In millions) 2017 2016 United States $ 790 $ 795 Foreign countries: Canada 1,143 1,259 South Korea — 8 1,143 1,267 $ 1,933 $ 2,062 |
Condensed Consolidating Finan50
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Year Ended December 31, 2017 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,849 $ 2,264 $ (1,600 ) $ 3,513 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,702 1,467 (1,595 ) 2,574 Depreciation and amortization — 74 130 — 204 Distribution costs — 159 291 (8 ) 442 Selling, general and administrative expenses 30 69 73 — 172 Closure costs, impairment and other related charges — 76 11 — 87 Net gain on disposition of assets — — (15 ) — (15 ) Operating (loss) income (30 ) (231 ) 307 3 49 Interest expense (95 ) (9 ) (13 ) 68 (49 ) Other income (expense), net — 76 (2 ) (68 ) 6 Equity in income of subsidiaries 41 43 — (84 ) — (Loss) income before income taxes (84 ) (121 ) 292 (81 ) 6 Income tax benefit (provision) — 2 (85 ) (1 ) (84 ) Net (loss) income including noncontrolling interests (84 ) (119 ) 207 (82 ) (78 ) Net income attributable to noncontrolling interests — — (6 ) — (6 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (84 ) $ (119 ) $ 201 $ (82 ) $ (84 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (109 ) $ (135 ) $ 192 $ (57 ) $ (109 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Year Ended December 31, 2016 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,907 $ 2,145 $ (1,507 ) $ 3,545 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,745 1,471 (1,500 ) 2,716 Depreciation and amortization — 78 128 — 206 Distribution costs — 168 273 (1 ) 440 Selling, general and administrative expenses 20 61 68 — 149 Closure costs, impairment and other related charges — 38 24 — 62 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (20 ) (183 ) 183 (6 ) (26 ) Interest expense (80 ) — (10 ) 52 (38 ) Other income, net — 57 2 (52 ) 7 Equity in income of subsidiaries 19 24 — (43 ) — (Loss) income before income taxes (81 ) (102 ) 175 (49 ) (57 ) Income tax provision — (11 ) (10 ) 2 (19 ) Net (loss) income including noncontrolling interests (81 ) (113 ) 165 (47 ) (76 ) Net income attributable to noncontrolling interests — — (5 ) — (5 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (81 ) $ (113 ) $ 160 $ (47 ) $ (81 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (249 ) $ (197 ) $ 73 $ 124 $ (249 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Year Ended December 31, 2015 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Sales $ — $ 2,975 $ 2,223 $ (1,553 ) $ 3,645 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,780 1,601 (1,555 ) 2,826 Depreciation and amortization — 93 144 — 237 Distribution costs — 168 293 (1 ) 460 Selling, general and administrative expenses 19 55 86 — 160 Closure costs, impairment and other related charges — 176 5 — 181 Operating (loss) income (19 ) (297 ) 94 3 (219 ) Interest expense (75 ) — (12 ) 46 (41 ) Other income, net — 37 13 (46 ) 4 Equity in (loss) income of subsidiaries (163 ) 20 — 143 — (Loss) income before income taxes (257 ) (240 ) 95 146 (256 ) Income tax benefit (provision) — 36 (34 ) (1 ) 1 Net (loss) income including noncontrolling interests (257 ) (204 ) 61 145 (255 ) Net income attributable to noncontrolling interests — — (2 ) — (2 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (257 ) $ (204 ) $ 59 $ 145 $ (257 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (126 ) $ (169 ) $ 155 $ 14 $ (126 ) |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 3 $ 3 $ — $ 6 Accounts receivable, net — 319 160 — 479 Accounts receivable from affiliates — 535 729 (1,264 ) — Inventories, net — 243 292 (9 ) 526 Note, advance and interest receivable from parent — 538 — (538 ) — Notes and interest receivable from affiliates — 32 — (32 ) — Other current assets — 16 17 — 33 Total current assets — 1,686 1,201 (1,843 ) 1,044 Fixed assets, net — 692 1,024 — 1,716 Amortizable intangible assets, net — 13 52 — 65 Goodwill — 81 — — 81 Deferred income tax assets — 1 1,073 2 1,076 Notes receivable from parent — 330 — (330 ) — Note receivable from affiliate — 116 — (116 ) — Investments in consolidated subsidiaries and affiliates 3,939 2,111 — (6,050 ) — Other assets — 98 67 — 165 Total assets $ 3,939 $ 5,128 $ 3,417 $ (8,337 ) $ 4,147 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 4 $ 171 $ 245 $ — $ 420 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 536 728 — (1,264 ) — Note, advance and interest payable to subsidiaries 538 — — (538 ) — Notes and interest payable to affiliate — — 32 (32 ) — Total current liabilities 1,078 900 277 (1,834 ) 421 Long-term debt, net of current portion 592 196 — — 788 Note payable to subsidiary 330 — — (330 ) — Note payable to affiliate — — 116 (116 ) — Pension and other postretirement benefit obligations — 378 879 — 1,257 Deferred income tax liabilities — — 13 — 13 Other liabilities 5 24 39 — 68 Total liabilities 2,005 1,498 1,324 (2,280 ) 2,547 Total equity 1,934 3,630 2,093 (6,057 ) 1,600 Total liabilities and equity $ 3,939 $ 5,128 $ 3,417 $ (8,337 ) $ 4,147 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2016 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 2 $ 33 $ — $ 35 Accounts receivable, net — 283 158 — 441 Accounts receivable from affiliates — 479 395 (874 ) — Inventories, net — 259 323 (12 ) 570 Note, advance and interest receivable from parent — 373 — (373 ) — Notes and interest receivable from affiliates — 54 — (54 ) — Other current assets — 16 19 — 35 Total current assets — 1,466 928 (1,313 ) 1,081 Fixed assets, net — 733 1,109 — 1,842 Amortizable intangible assets, net — 14 56 — 70 Goodwill — 81 — — 81 Deferred income tax assets — — 1,036 3 1,039 Note receivable from parent — 443 — (443 ) — Note receivable from affiliate — 109 — (109 ) — Investments in consolidated subsidiaries and affiliates 3,918 2,068 — (5,986 ) — Other assets — 62 102 — 164 Total assets $ 3,918 $ 4,976 $ 3,231 $ (7,848 ) $ 4,277 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 5 $ 222 $ 239 $ — $ 466 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 479 395 — (874 ) — Note, advance and interest payable to subsidiaries 373 — — (373 ) — Notes and interest payable to affiliate — — 54 (54 ) — Total current liabilities 857 618 293 (1,301 ) 467 Long-term debt, net of current portion 590 171 — — 761 Note payable to subsidiary 443 — — (443 ) — Note payable to affiliate — — 109 (109 ) — Pension and other postretirement benefit obligations — 397 884 — 1,281 Deferred income tax liabilities — 1 1 — 2 Other liabilities — 24 31 — 55 Total liabilities 1,890 1,211 1,318 (1,853 ) 2,566 Total equity 2,028 3,765 1,913 (5,995 ) 1,711 Total liabilities and equity $ 3,918 $ 4,976 $ 3,231 $ (7,848 ) $ 4,277 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2017 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by operating activities $ — $ 125 $ 33 $ — $ 158 Cash flows from investing activities: Cash invested in fixed assets — (116 ) (48 ) — (164 ) Disposition of assets — — 21 — 21 Increase in countervailing duty cash deposits on supercalendered paper — (22 ) — — (22 ) Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (26 ) — — (26 ) Increase in restricted cash, net — — (3 ) — (3 ) Decrease in deposit requirements for letters of credit, net — — 2 — 2 Decrease in notes receivable from affiliate, net — 22 — (22 ) — Net cash used in investing activities — (142 ) (28 ) (22 ) (192 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 19 — — 19 Acquisition of noncontrolling interest in Donohue Malbaie Inc. — — (15 ) — (15 ) Issuance of long-term debt — — — — — Payments of debt — (1 ) — — (1 ) Payments of financing and credit facility fees — — — — — Decrease in notes payable to affiliate, net — — (22 ) 22 — Net cash provided by (used in) financing activities — 18 (37 ) 22 3 Effect of exchange rate changes on cash and cash equivalents — — 2 — 2 Net increase (decrease) in cash and cash equivalents — 1 (30 ) — (29 ) Cash and cash equivalents: Beginning of year — 2 33 — 35 End of year $ — $ 3 $ 3 $ — $ 6 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2016 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by operating activities $ — $ 30 $ 51 $ — $ 81 Cash flows from investing activities: Cash invested in fixed assets — (179 ) (70 ) — (249 ) Acquisition of a sawmill in Senneterre — — (6 ) — (6 ) Disposition of assets — — 5 — 5 Increase in countervailing duty cash deposits on supercalendered paper — (23 ) — — (23 ) Increase in notes receivable from affiliate — (8 ) — 8 — Net cash used in investing activities — (210 ) (71 ) 8 (273 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 125 — — 125 Issuance of long-term debt — 46 — — 46 Payments of debt — (1 ) — — (1 ) Payments of financing and credit facility fees — (1 ) — — (1 ) Increase in notes payable to affiliate — — 8 (8 ) — Net cash provided by financing activities — 169 8 (8 ) 169 Effect of exchange rate changes on cash and cash equivalents — — — — — Net decrease in cash and cash equivalents — (11 ) (12 ) — (23 ) Cash and cash equivalents: Beginning of year — 13 45 — 58 End of year $ — $ 2 $ 33 $ — $ 35 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2015 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by (used in) operating activities $ — $ 151 $ (13 ) $ — $ 138 Cash flows from investing activities: Cash invested in fixed assets — (101 ) (84 ) — (185 ) Acquisition of Atlas Tissue, including cash overdraft acquired — (159 ) — — (159 ) Increase in countervailing duty cash deposits on supercalendered paper — (4 ) — — (4 ) Increase in deposit requirements for letters of credit, net — — (4 ) — (4 ) Investment in common stock of subsidiary — (234 ) — 234 — Advance to parent — (59 ) — 59 — Decrease of notes receivable from affiliates — 164 — (164 ) — Net cash used in investing activities — (393 ) (88 ) 129 (352 ) Cash flows from financing activities: Payments of financing and credit facility fees — (2 ) (1 ) — (3 ) Purchases of treasury stock (59 ) — — — (59 ) Issuance of common stock — — 234 (234 ) — Advance to subsidiary 59 — — (59 ) — Decrease in notes payable to affiliate — — (164 ) 164 — Net cash (used in) provided by financing activities — (2 ) 69 (129 ) (62 ) Effect of exchange rate changes on cash and cash equivalents — — (3 ) — (3 ) Net decrease in cash and cash equivalents — (244 ) (35 ) — (279 ) Cash and cash equivalents: Beginning of year — 257 80 — 337 End of year $ — $ 13 $ 45 $ — $ 58 |
Quarterly Information (Tables)
Quarterly Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Financial Data | Year ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Year (In millions, except per share amounts) Sales $ 872 $ 858 $ 885 $ 898 $ 3,513 Operating (loss) income (6 ) (47 ) 48 54 49 Net (loss) income attributable to Resolute Forest Products Inc. (47 ) (74 ) 24 13 (84 ) Basic net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.52 ) (0.82 ) 0.27 0.14 (0.93 ) Diluted net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.52 ) (0.82 ) 0.26 0.14 (0.93 ) Year ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Year (In millions, except per share amounts) Sales $ 877 $ 891 $ 888 $ 889 $ 3,545 Operating (loss) income — (18 ) 10 (18 ) (26 ) Net (loss) income attributable to Resolute Forest Products Inc. (8 ) (42 ) 14 (45 ) (81 ) Basic net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.09 ) (0.47 ) 0.16 (0.50 ) (0.90 ) Diluted net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.09 ) (0.47 ) 0.15 (0.50 ) (0.90 ) |
Organization and Basis of Pre52
Organization and Basis of Presentation - Nature of Operations (Details) | Dec. 31, 2017sitecountry |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries products are marketed in (approximate) | country | 70 |
Number of manufacturing facilities (approximate) | site | 40 |
Organization and Basis of Pre53
Organization and Basis of Presentation - Summary of Less Than Wholly-Owned Consolidated Subsidiaries (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidation, Less than Wholly Owned Subsidiary, Ownership Interests [Line Items] | |||
Equity interest ownership percentage acquired from noncontrolling owners | 49.00% | ||
Cash purchase price of noncontrolling interest in Donohue Malbaie Inc. | $ 15 | $ 0 | $ 0 |
Percentage of ownership before acquisition | 51.00% | ||
Acquisition of noncontrolling interest | $ (15) | ||
Forest Products Mauricie L.P. [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Ownership Interests [Line Items] | |||
Resolute Forest Products ownership | 93.20% | ||
Partner ownership | 6.80% | ||
Additional Paid-in Capital [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Ownership Interests [Line Items] | |||
Acquisition of noncontrolling interest | $ 8 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Restricted cash | $ 43 | $ 38 | |
Estimated 2018 non-operating pension and other postretirement benefit costs (credits) | 55 | ||
Non-operating pension and other postretirement benefit costs (credits) | $ 7 | $ (8) | $ (50) |
Acquisition of Atlas Inc. - Pro
Acquisition of Atlas Inc. - Pro Forma Information (Details) - Atlas Inc. [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / shares | |
Sales | $ | $ 3,730 |
Net loss attributable to Resolute Forest Products Inc. | $ | $ (261) |
Basic net loss per share attributable to Resolute Forest Products Inc. | $ / shares | $ (2.82) |
Diluted net loss per share attributable to Resolute Forest Products Inc. | $ / shares | $ (2.82) |
Acquisition of Atlas Inc. - Add
Acquisition of Atlas Inc. - Additional Information (Details) - USD ($) $ in Millions | Nov. 16, 2015 | Dec. 31, 2015 |
Transaction costs | $ 3 | |
Atlas Inc. [Member] | ||
Acquiree costs excluded from pro forma information consideration | $ 16 | |
Atlas Inc. [Member] | ||
Fair value of consideration transferred | $ 157 | |
Business combination, consideration to be recovered | $ 2 |
Closure Costs, Impairment and57
Closure Costs, Impairment and Other Related Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | $ 60 | $ 22 | $ 176 | ||
Accelerated depreciation | 6 | 35 | 2 | ||
Pension and OPEB plan curtailments and other | 5 | ||||
Severance and other costs | 16 | 5 | 3 | ||
Total | 87 | 62 | 181 | ||
Pulp mill in Coosa Pines, Alabama [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | [1] | 55 | |||
Accelerated depreciation | [1] | 0 | |||
Pension and OPEB plan curtailments and other | [1] | 0 | |||
Severance and other costs | [1] | 0 | |||
Total | [1] | 55 | |||
Permanent closure of paper machine in Catawba, South Carolina [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 5 | ||||
Accelerated depreciation | 0 | ||||
Pension and OPEB plan curtailments and other | 2 | ||||
Severance and other costs | 4 | ||||
Total | 11 | ||||
Permanent closure of paper machines in Calhoun, Tennessee [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | ||||
Accelerated depreciation | 6 | ||||
Pension and OPEB plan curtailments and other | 3 | ||||
Severance and other costs | 2 | ||||
Total | 11 | ||||
Permanent closure of paper mill in Mokpo, South Korea [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | 13 | [2] | ||
Accelerated depreciation | 0 | 0 | [2] | ||
Pension and OPEB plan curtailments and other | 0 | ||||
Severance and other costs | 7 | 0 | [2] | ||
Total | 7 | 13 | [2] | ||
Permanent closure of a paper machine in Augusta, Georgia [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | ||||
Accelerated depreciation | 32 | ||||
Severance and other costs | 4 | ||||
Total | 36 | ||||
Paper mill in Catawba, South Carolina [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | [3] | 176 | |||
Accelerated depreciation | [3] | 0 | |||
Severance and other costs | [3] | 0 | |||
Total | [3] | 176 | |||
Permanent closure of paper mill in Iroquois Falls, Ontario [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | ||||
Accelerated depreciation | 0 | ||||
Severance and other costs | 3 | ||||
Total | 3 | ||||
Permanent closure of paper machine in Clermont, Quebec [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | ||||
Accelerated depreciation | 2 | ||||
Severance and other costs | 0 | ||||
Total | $ 2 | ||||
Other [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | 9 | |||
Accelerated depreciation | 0 | 3 | |||
Pension and OPEB plan curtailments and other | 0 | ||||
Severance and other costs | 3 | 1 | |||
Total | $ 3 | $ 13 | |||
[1] | As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the year ended December 31, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. | ||||
[2] | Due to declining market conditions and rising recycled fiber prices, we recorded long-lived asset impairment charges of $13 million for the year ended December 31, 2016, to reduce the carrying value of the assets to fair value. Management estimated fair value using the market approach, by reference to transactions on comparable assets adjusted for additional risks and uncertainties associated with the deteriorating market environment, as well as increased competition in Asia. The fair value measurement is considered a level 3 measurement due to the significance of its unobservable inputs. In 2017, we announced the permanent closure of our Mokpo paper mill effective March 9, 2017. | ||||
[3] | As a result of declining market conditions, we recorded long-lived asset impairment charges of $176 million for the year ended December 31, 2015, related to our Catawba paper assets, to reduce the carrying value of the assets to fair value. Management estimated the fair value using the income approach. Projected discounted cash flows utilized under the income approach included estimates regarding future revenues and expenses attributable to the Catawba paper activities, projected capital expenditures and a discount rate of 12%. This fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. |
Closure Costs, Impairment and58
Closure Costs, Impairment and Other Related Charges - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Restructuring Cost and Reserve [Line Items] | |||||
Long-lived asset impairment charges | $ 60 | $ 22 | $ 176 | ||
Pulp mill in Coosa Pines, Alabama [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Long-lived asset impairment charges | [1] | 55 | |||
Permanent closure of paper mill in Mokpo, South Korea [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Long-lived asset impairment charges | $ 0 | $ 13 | [2] | ||
Paper mill in Catawba, South Carolina [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Long-lived asset impairment charges | [3] | $ 176 | |||
Fair value inputs, discount rate | 12.00% | ||||
[1] | As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the year ended December 31, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. | ||||
[2] | Due to declining market conditions and rising recycled fiber prices, we recorded long-lived asset impairment charges of $13 million for the year ended December 31, 2016, to reduce the carrying value of the assets to fair value. Management estimated fair value using the market approach, by reference to transactions on comparable assets adjusted for additional risks and uncertainties associated with the deteriorating market environment, as well as increased competition in Asia. The fair value measurement is considered a level 3 measurement due to the significance of its unobservable inputs. In 2017, we announced the permanent closure of our Mokpo paper mill effective March 9, 2017. | ||||
[3] | As a result of declining market conditions, we recorded long-lived asset impairment charges of $176 million for the year ended December 31, 2015, related to our Catawba paper assets, to reduce the carrying value of the assets to fair value. Management estimated the fair value using the income approach. Projected discounted cash flows utilized under the income approach included estimates regarding future revenues and expenses attributable to the Catawba paper activities, projected capital expenditures and a discount rate of 12%. This fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. |
Net Gain on Disposition of As59
Net Gain on Disposition of Assets Net Gain on Disposition of Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Gain on Disposition of Assets [Abstract] | |||
Total consideration from disposition of assets | $ 21 | ||
Net gain on disposition of assets | $ 15 | $ 2 | $ 0 |
Other Income (Expense), Net - (
Other Income (Expense), Net - (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Other Income and Expenses [Abstract] | ||||
Foreign exchange gain (loss) | $ 9 | $ (7) | $ (4) | |
Gain on disposition of equity method investment | [1] | 0 | 5 | 0 |
Miscellaneous (expense) income | (3) | 9 | 8 | |
Other income (expense), net | $ 6 | $ 7 | $ 4 | |
[1] | On February 1, 2016, we sold for total consideration of $5 million our interest in Produits Forestiers Petit-Paris Inc., an unconsolidated entity located in Saint-Ludger-de-Milot (Quebec), in which we had a 50% interest, resulting in a gain on disposition of $5 million. |
Other Income (Expense), Net - A
Other Income (Expense), Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 01, 2016 | ||
Other Income (Expense) [Line Items] | |||||
Gain on disposition of equity method investment | [1] | $ 0 | $ 5 | $ 0 | |
Produits Forestiers Petit-Paris Inc. [Member] | |||||
Other Income (Expense) [Line Items] | |||||
Proceeds from sale of equity method investments | 5 | ||||
Ownership percentage of equity method investment | 50.00% | ||||
Gain on disposition of equity method investment | $ 5 | ||||
[1] | On February 1, 2016, we sold for total consideration of $5 million our interest in Produits Forestiers Petit-Paris Inc., an unconsolidated entity located in Saint-Ludger-de-Milot (Quebec), in which we had a 50% interest, resulting in a gain on disposition of $5 million. |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ (755) | |||
Other comprehensive income (loss) before reclassifications | (50) | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | 25 | ||
Other comprehensive (loss) income, net of tax | (25) | $ (168) | $ 131 | |
Ending balance | (780) | (755) | ||
Unamortized Prior Service Credits [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 67 | |||
Other comprehensive income (loss) before reclassifications | 1 | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | (16) | ||
Other comprehensive (loss) income, net of tax | (15) | |||
Ending balance | 52 | 67 | ||
Unamortized Actuarial Losses [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (819) | |||
Other comprehensive income (loss) before reclassifications | (48) | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | 41 | ||
Other comprehensive (loss) income, net of tax | (7) | |||
Ending balance | (826) | (819) | ||
Foreign Currency Translation [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (3) | |||
Other comprehensive income (loss) before reclassifications | (3) | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | ||
Other comprehensive (loss) income, net of tax | (3) | |||
Ending balance | $ (6) | $ (3) | ||
[1] | See the table below for details about these reclassifications. |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 2,574 | $ 2,716 | $ 2,826 | |||||||||
Closure costs, impairment and other related charges | 87 | 62 | 181 | |||||||||
Income tax provision (benefit) | 84 | 19 | (1) | |||||||||
Net of tax | $ (13) | $ (24) | $ 74 | $ 47 | $ 45 | $ (14) | $ 42 | $ 8 | 84 | $ 81 | $ 257 | |
Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Net of tax | 25 | |||||||||||
Unamortized Prior Service Credits [Member] | Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | [1] | (15) | ||||||||||
Closure costs, impairment and other related charges | [1] | (1) | ||||||||||
Income tax provision (benefit) | 0 | |||||||||||
Net of tax | (16) | |||||||||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent, Amortization of Actuarial Gains (Losses) [Member] | Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | [1] | 50 | ||||||||||
Unamortized Actuarial Losses [Member] | Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Closure costs, impairment and other related charges | [1] | 1 | ||||||||||
Income tax provision (benefit) | (11) | |||||||||||
Net of tax | 41 | |||||||||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent, Settlement Gains (Losses) [Member] | Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | [1] | $ 1 | ||||||||||
[1] | These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 14, “Pension and Other Postretirement Benefit Plans.” |
Net (Loss) Income Per Share - S
Net (Loss) Income Per Share - Schedule of Weighted-Average Outstanding Stock Options and Nonvested Equity-Classified RSUs, DSUs and PSUs (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss attributable to Resolute Forest Products Inc. | $ 13 | $ 24 | $ (74) | $ (47) | $ (45) | $ 14 | $ (42) | $ (8) | $ (84) | $ (81) | $ (257) |
Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding | 90.5 | 89.9 | 92.4 | ||||||||
Dilutive impact of nonvested stock incentive awards | 0 | 0 | 0 | ||||||||
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding | 90.5 | 89.9 | 92.4 | ||||||||
Basic (in dollars per share) | $ 0.14 | $ 0.27 | $ (0.82) | $ (0.52) | $ (0.50) | $ 0.16 | $ (0.47) | $ (0.09) | $ (0.93) | $ (0.90) | $ (2.78) |
Diluted (in dollars per share) | $ 0.14 | $ 0.26 | $ (0.82) | $ (0.52) | $ (0.50) | $ 0.15 | $ (0.47) | $ (0.09) | $ (0.93) | $ (0.90) | $ (2.78) |
Stock options [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of earnings per share | 1.4 | 1.4 | 1.5 | ||||||||
Stock unit awards [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of earnings per share | 4.1 | 2.6 | 1.4 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 108 | $ 126 |
Work in process | 38 | 45 |
Finished goods | 175 | 183 |
Mill stores and other supplies | 205 | 216 |
Inventories, net | $ 526 | $ 570 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |||
Inventory write-downs related to closures | $ 24 | $ 7 | $ 2 |
Fixed Assets, Net (Details)
Fixed Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 3,330 | $ 3,257 | |
Less: accumulated depreciation | (1,614) | (1,415) | |
Fixed assets, net | 1,716 | 1,842 | |
Land and land improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 56 | 77 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 298 | 257 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | [1] | 2,544 | 2,264 |
Hydroelectric power plants [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 292 | 287 | |
Timber and timberlands improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 110 | 109 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | [1] | 30 | 263 |
Internal-use software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Machinery and equipment, gross | 111 | 83 | |
Construction in progress, gross | 0 | 13 | |
Fixed assets, gross | 111 | 96 | |
Less: accumulated depreciation | (42) | (27) | |
Fixed assets, net | $ 69 | $ 69 | |
[1] | Internal-use software included in fixed assets, net as of December 31, 2017 and 2016, was as follows: (In millions)2017 2016 Machinery and equipment$111 $83 Construction in progress — 13 111 96 Less: Accumulated depreciation (42) (27) $69 $69 Depreciation expense related to internal-use software is estimated to be $16 million for each of the next two years, $12 million from 2020 to 2021, and $8 million in 2022. |
Fixed Assets, Net Fixed Assets,
Fixed Assets, Net Fixed Assets, Net (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Land and land improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Land and land improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 years |
Hydroelectric power plants [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Hydroelectric power plants [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Timber and timberlands improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Timber and timberlands improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Internal-use software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciation expense, 2018 | $ 16 |
Estimated depreciation expense, 2019 | 16 |
Estimated depreciation expense, 2020 | 12 |
Estimated depreciation expense, 2021 | 12 |
Estimated depreciation expense, 2022 | $ 8 |
Amortizable Intangible Assets69
Amortizable Intangible Assets, Net - Summary of Amortizable Intangible Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | $ 86 | $ 86 | |
Accumulated amortization | 21 | 16 | |
Net | 65 | 70 | |
Water rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | [1] | 19 | 19 |
Accumulated amortization | [1] | 5 | 4 |
Net | [1] | 14 | 15 |
Energy contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | 52 | 52 | |
Accumulated amortization | 14 | 11 | |
Net | 38 | 41 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | 14 | 14 | |
Accumulated amortization | 2 | 1 | |
Net | 12 | 13 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | 1 | 1 | |
Accumulated amortization | 0 | 0 | |
Net | $ 1 | $ 1 | |
[1] | In order to operate our hydroelectric generation and transmission network, we draw water from various rivers in Quebec. For some of our facilities, the use of such government-owned waters is governed by water power leases or agreements with the province of Quebec, which set out the terms, conditions, and fees (as applicable). Terms of these agreements typically range from 10 to 25 years and are generally renewable, under certain conditions. In some cases, the agreements are contingent on the continued operation of the related paper mills and a minimum level of capital spending in the region. For our other facilities, the right to generate hydroelectricity stems from our ownership of the riverbed on which these facilities are located. |
Amortizable Intangible Assets70
Amortizable Intangible Assets, Net - Summary of Amortizable Intangible Assets, Net (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Water rights [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Water rights [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 40 years |
Energy contracts [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 15 years |
Energy contracts [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 25 years |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 15 years |
Amortizable Intangible Assets71
Amortizable Intangible Assets, Net - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Term of water power agreements | 10 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Term of water power agreements | 25 years |
Amortizable Intangible Assets72
Amortizable Intangible Assets, Net - Additional Information (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization expense related to amortizable intangible assets | $ 5 | $ 4 | $ 3 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense, 2018 | 5 | ||
Estimated amortization expense, 2019 | 5 | ||
Estimated amortization expense, 2020 | 5 | ||
Estimated amortization expense, 2021 | 5 | ||
Estimated amortization expense, 2022 | $ 4 |
Accounts Payable and Accrued 73
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 306 | $ 346 |
Payroll, bonuses and severance payable | 55 | 51 |
Accrued interest | 5 | 5 |
Pension and other postretirement benefit obligations | 18 | 17 |
Book overdrafts | 0 | 13 |
Income and other taxes payable | 10 | 7 |
Environmental liabilities | 2 | 5 |
Other | 24 | 22 |
Accounts payable and accrued liabilities | $ 420 | $ 466 |
Long-Term Debt - Long Term Debt
Long-Term Debt - Long Term Debt Including Current Portion (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Borrowings under revolving credit facilities | $ 144 | $ 125 |
Capital lease obligation | 7 | 1 |
Total debt | 789 | 762 |
Less: Current portion of long-term debt | (1) | (1) |
Long-term debt, net of current portion | 788 | 761 |
Secured Debt [Member] | Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Net carrying amount | 46 | 46 |
Senior Notes [Member] | Senior Notes Due Two Thousand Twenty-Three [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 600 | 600 |
Deferred finance costs | (5) | (6) |
Unamortized discount | (3) | (4) |
Net carrying amount | $ 592 | $ 590 |
Long-Term Debt - Debt Redemptio
Long-Term Debt - Debt Redemption Schedule (Details) - Redemption Including Accrued And Unpaid Interest [Member] - Senior Notes Due Two Thousand Twenty-Three [Member] - Senior Notes [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Twelve Month Period Beginning May 15, 2017 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 104.406% |
Twelve Month Period Beginning May 15, 2018 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 102.938% |
Twelve Month Period Beginning May 15, 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 101.469% |
Twelve Month Period Beginning May 15, 2020 and Thereafter [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 100.00% |
Long-Term Debt - Debt Redempt76
Long-Term Debt - Debt Redemption Schedule - Additional Information (Details) - Senior Notes [Member] - Senior Notes Due Two Thousand Twenty-Three [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Redemption Including Accrued And Unpaid Interest Upon A Change Of Control [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 101.00% |
Redemption Including Accrued And Unpaid Interest Using Net Cash Proceeds From Asset Sales [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 100.00% |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Including Current Portion - 2023 Notes (Details) - Senior Notes Due Two Thousand Twenty-Three [Member] - Senior Notes [Member] - USD ($) | May 08, 2013 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Principal amount of debt | $ 600,000,000 | ||
Interest rate of notes | 5.875% | ||
Fair value of senior notes | $ 594,000,000 | $ 622,000,000 | $ 543,000,000 |
Unamortized discount | $ 6,000,000 | ||
Effective interest rate of debt | 6.00% | ||
Maturity date | May 15, 2023 | ||
Deferred financing costs | $ 9,000,000 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility (Details) - Senior Secured Credit Facility [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Sep. 07, 2016 | |
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 185,000,000 | |
Maximum capitalization ratio | 45.00% | |
Minimum available liquidity | $ 100,000,000 | |
Minimum collateral coverage ratio | 1.8 | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 46,000,000 | |
Secured Debt [Member] | Base Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate margin applicable to borrowings | 0.875% | |
Secured Debt [Member] | Base Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate margin applicable to borrowings | 1.50% | |
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate margin applicable to borrowings | 1.875% | |
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate margin applicable to borrowings | 2.50% | |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility lender commitment amount | 139,000,000 | |
Credit facility uncommitted option amount | $ 175,000,000 | |
Average daily utilization threshold, percentage | 35.00% | |
Available credit facility borrowing capacity | $ 56,000,000 | |
Credit facility borrowings | $ 83,000,000 | |
Line of Credit [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility commitment fee percentage, unutilized commitments | 0.275% | |
Line of Credit [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility commitment fee percentage, unutilized commitments | 0.325% | |
Line of Credit [Member] | Base Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate margin applicable to borrowings | 0.50% | |
Line of Credit [Member] | Base Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate margin applicable to borrowings | 1.125% | |
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate margin applicable to borrowings | 1.50% | |
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate margin applicable to borrowings | 2.125% | |
Federal Funds Effective Swap Rate [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate margin applicable to borrowings | 0.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate margin applicable to borrowings | 1.00% |
Long-Term Debt - Long-Term De79
Long-Term Debt - Long-Term Debt Including Current Portion - ABL Credit Facility (Details) - Revolving Credit Facility [Member] | May 22, 2015 | Dec. 31, 2017USD ($)day |
Line of Credit Facility [Line Items] | ||
Credit facility, term | 5 years | |
Credit facility lender commitment amount | $ 600,000,000 | |
Uncommitted ability to increase borrowing capacity, maximum | $ 500,000,000 | |
Borrowing base availability, eligible accounts receivable, percentage | 85.00% | |
Borrowing base availability, eligible insured or letter of credit backed accounts and accounts owed by investment grade obligors, percentage | 90.00% | |
Borrowing base availability, cost or market value of eligible inventory, percentage | 70.00% | |
Borrowing base availability, net orderly liquidation value of eligible inventory, percentage | 85.00% | |
Borrowing base availability, value of eligible cash, percentage | 100.00% | |
Borrowing base availability, value of permitted investments held in deposit accounts controlled solely by the agent, percentage | 95.00% | |
Average daily utilization threshold, percentage | 35.00% | |
Credit facility, fronting fee percentage | 0.125% | |
Minimum fixed charge coverage ratio required if excess availability falls below certain conditions | 1 | |
Minimum excess availability of credit facility before triggering fixed coverage ratio requirement, amount | $ 50,000,000 | |
Minimum excess availability of credit facility before triggering fixed coverage ratio requirement, percentage of the maximum available borrowing amount | 10.00% | |
Number of consecutive business days minimum excess availability of credit facility conditions must persist before triggering fixed coverage ratio requirement | day | 2 | |
Available credit facility borrowing capacity | $ 356,000,000 | |
Credit facility borrowings | 61,000,000 | |
Letters of credit amount outstanding | 40,000,000 | |
Swingline [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | 60,000,000 | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | $ 200,000,000 | |
Borrowing base availability, eligible accounts receivable, percentage | 85.00% | |
Borrowing base availability, eligible insured or letter of credit backed accounts and accounts owed by investment grade obligors, percentage | 90.00% | |
Borrowing base availability, cost or market value of eligible inventory, percentage | 70.00% | |
Borrowing base availability, net orderly liquidation value of eligible inventory, percentage | 85.00% | |
Borrowing base availability, value of eligible cash, percentage | 100.00% | |
Borrowing base availability, value of permitted investments held in deposit accounts controlled solely by the agent, percentage | 95.00% | |
FIFO Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowing base availability, eligible accounts receivable, percentage | 5.00% | |
Interest Rate on Revolving Loans Not Made Under the FILO Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.25% | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility commitment fee percentage, unutilized commitments | 0.25% | |
Minimum [Member] | FIFO Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowing base availability, net orderly liquidation value of eligible inventory, percentage | 5.00% | |
Minimum [Member] | Canadian Banker's Acceptance Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.00% | |
Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 0.00% | |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.00% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility commitment fee percentage, unutilized commitments | 0.30% | |
Maximum [Member] | FIFO Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitments of the ABL Credit Facility convertible to a first-in last-out facility | $ 50,000,000 | |
Borrowing base availability, net orderly liquidation value of eligible inventory, percentage | 10.00% | |
Maximum [Member] | Canadian Banker's Acceptance Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.75% | |
Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 0.75% | |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.75% |
Long-Term Debt - Long-Term Incl
Long-Term Debt - Long-Term Including Current Portion - Other Debt (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Debt Disclosure [Abstract] | |
Length of warehouse capital lease obligation renewal option | 20 years |
Carrying value of assets pledged as collateral for total debt | $ 1.4 |
Pension and Other Postretirem81
Pension and Other Postretirement Benefit Plans - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017CAD | Dec. 31, 2017USD ($) | Dec. 31, 2017CAD | Dec. 31, 2016USD ($) | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Total benefit obligations for pension plans with benefit obligations in excess of plan assets | $ | $ 5,213 | $ 4,958 | ||
Total fair value of plan assets for pension plans with benefit obligations in excess of plan assets | $ | 4,110 | 3,832 | ||
Total accumulated benefit obligations for pension plans with accumulated benefit obligations in excess of plan assets | $ | 5,163 | 4,903 | ||
Total fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets | $ | 4,110 | 3,832 | ||
Total accumulated benefit obligations for all pension plans | $ | 5,421 | $ 5,141 | ||
Estimated amount of actuarial (gains) losses to be amortized from accumulated other comprehensive income (loss) in the next fiscal year | $ | 34 | |||
Estimated amount of prior service credits (costs) that will be amortized from accumulated other comprehensive income (loss) in the next fiscal year | $ | 15 | |||
Estimated pension contributions in the next fiscal year | $ | 105 | |||
Percentage threshold by which solvency ratio of pension plans subject to canadian pension funding relief measures is less than the target of the previous year before triggering additional contribution | 2.00% | |||
Period over which subsequent year supplemental contribution payments under the Canadian pension funding relief regulations must be made | 3 years | |||
Percentage threshold by which solvency ratio of pension plans subject to Canadian pension funding relief measures is less than the target before triggering supplemental contribution | 2.00% | |||
Canada [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Estimated pension contributions in the next fiscal year | $ 69 | CAD 87,000,000 | ||
Ontario [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Revised annual contribution to pension plans subject to Canadian pension funding relief measures | CAD 9,000,000 | |||
Prorated remaining annual contribution to pension plans subject to canadian pension funding relief measures in 2017 prior to amendement | 5,000,000 | |||
Corrective measures amount payable under the Canadian pension funding relief regulations at expiration | CAD 110,000,000 | |||
Corrective measures amount payable under the Canadian pension funding relief regulations, payment period | 5 years | |||
Equity Securities [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets | 50.00% | 50.00% | ||
Equity Securities [Member] | United States and Canada [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets | 60.00% | 60.00% | ||
Debt Securities [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets | 50.00% | 50.00% | ||
RFP Canada Inc. [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Reduction in additional solvency deficit contributions for past capacity reduction in Ontario for 2017 | CAD 16,000,000 | |||
Reduction in additional solvency deficit contributions for past capacity reduction in Ontario for 2018 | 8,000,000 | |||
Annual additional contribution related to downtime under the Canadian pension funding relief regulations | 14,000,000 | |||
Expected annual additional contribution related to downtime expected in 2018 under the Canadian pension funding relief regulations | 11,000,000 | |||
Expected annual additional contribution related to downtime expected in 2019 under the Canadian pension funding relief regulations | 4,000,000 | |||
Expected annual additional contribution related to downtime expected in 2020 under the Canadian pension funding relief regulations | 2,000,000 | |||
RFP Canada Inc. [Member] | Quebec [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations | CAD 75 | |||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, payment period | 4 years | |||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, consecutive period of continued downtime threshold | 6 months | |||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, cumulative period of downtime threshold | 9 months | |||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, period covering cumulative period of downtime threshold | 18 months | |||
Minimum [Member] | Equity Securities [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets | 30.00% | 30.00% | ||
Minimum [Member] | Debt Securities [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets | 40.00% | 40.00% | ||
Maximum [Member] | Equity Securities [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets | 60.00% | 60.00% | ||
Maximum [Member] | Debt Securities [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets | 70.00% | 70.00% | ||
Maximum [Member] | Short-term Instruments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets | 5.00% | 5.00% |
Pension and Other Postretirem82
Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans - Additional Information (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Expense for the defined contribution plans, total | $ 21 | $ 21 | $ 20 |
Pension and Other Postretirem83
Pension and Other Postretirement Benefit Plans - Summary of Changes in Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||
Benefit obligations as of beginning of year | $ 5,196 | $ 5,068 | |
Service cost | 19 | 20 | $ 23 |
Interest cost | 199 | 215 | 225 |
Actuarial loss (gain) | 156 | 169 | |
Participant contributions | 7 | 8 | |
Plan amendment | 0 | 1 | |
Special termination benefits | 5 | 0 | |
Curtailments | 1 | 0 | |
Settlements | (29) | (28) | |
Benefits paid | (365) | (380) | |
Effect of foreign currency exchange rate changes | 285 | 123 | |
Benefit obligations as of end of year | 5,474 | 5,196 | 5,068 |
OPEB Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||
Benefit obligations as of beginning of year | 172 | 174 | |
Service cost | 1 | 1 | 1 |
Interest cost | 7 | 7 | 8 |
Actuarial loss (gain) | (7) | 0 | |
Participant contributions | 2 | 2 | |
Plan amendment | (1) | 0 | |
Special termination benefits | 0 | 0 | |
Curtailments | 4 | 0 | |
Settlements | 0 | 0 | |
Benefits paid | (13) | (15) | |
Effect of foreign currency exchange rate changes | 7 | 3 | |
Benefit obligations as of end of year | $ 172 | $ 172 | $ 174 |
Pension and Other Postretirem84
Pension and Other Postretirement Benefit Plans - Summary of Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | $ 4,073 | |
Fair value of plan assets as of end of year | 4,377 | $ 4,073 |
Pension Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 4,073 | 4,049 |
Actual return on plan assets | 346 | 184 |
Employer contributions | 111 | 141 |
Participant contributions | 7 | 8 |
Settlements | (29) | (28) |
Benefits paid | (365) | (380) |
Effect of foreign currency exchange rate changes | 234 | 99 |
Fair value of plan assets as of end of year | 4,377 | 4,073 |
Funded status as of end of year | (1,097) | (1,123) |
OPEB Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 11 | 13 |
Participant contributions | 2 | 2 |
Settlements | 0 | 0 |
Benefits paid | (13) | (15) |
Effect of foreign currency exchange rate changes | 0 | 0 |
Fair value of plan assets as of end of year | 0 | 0 |
Funded status as of end of year | $ (172) | $ (172) |
Pension and Other Postretirem85
Pension and Other Postretirement Benefit Plans - Summary of Amounts Recognized in our Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Accounts payable and accrued liabilities | $ (18) | $ (17) |
Pension and OPEB obligations | (1,257) | (1,281) |
Pension Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Other assets | 6 | 3 |
Accounts payable and accrued liabilities | (3) | (3) |
Pension and OPEB obligations | (1,100) | (1,123) |
Net obligations recognized | (1,097) | (1,123) |
OPEB Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Other assets | 0 | 0 |
Accounts payable and accrued liabilities | (15) | (14) |
Pension and OPEB obligations | (157) | (158) |
Net obligations recognized | $ (172) | $ (172) |
Pension and Other Postretirem86
Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Curtailments, settlements and other losses | $ 5 | ||
Pension Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Service cost | 19 | $ 20 | $ 23 |
Interest cost | 199 | 215 | 225 |
Expected return on plan assets | (254) | (247) | (260) |
Amortization of prior service credits | (1) | (1) | (2) |
Amortization of actuarial losses (gains) | 55 | 54 | 84 |
Net periodic benefit cost before special events | 18 | 41 | 70 |
Curtailments, settlements and other losses | 7 | 0 | 14 |
Net periodic benefit cost | 25 | 41 | 84 |
OPEB Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Service cost | 1 | 1 | 1 |
Interest cost | 7 | 7 | 8 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credits | (14) | (15) | (14) |
Amortization of actuarial losses (gains) | (5) | (5) | (5) |
Net periodic benefit cost before special events | (11) | (12) | (10) |
Curtailments, settlements and other losses | (1) | 0 | 0 |
Net periodic benefit cost | $ (12) | $ (12) | $ (10) |
Pension and Other Postretirem87
Pension and Other Postretirement Benefit Plans - Weighted-Average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.60% | 3.80% | 4.20% |
Rate of compensation increase | 2.10% | 2.50% | 2.50% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.80% | 4.20% | 4.00% |
Expected return on assets | 6.30% | 6.20% | 6.30% |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
OPEB Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.60% | 3.90% | 4.40% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.90% | 4.40% | 4.10% |
Pension and Other Postretirem88
Pension and Other Postretirement Benefit Plans - Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Domestic Plan [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Health care cost trend rate assumed for next year | 7.20% | 7.00% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2,030 | 2,028 |
Foreign Plan [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Health care cost trend rate assumed for next year | 4.80% | 4.20% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.00% |
Year that the rate reaches the ultimate trend rate | 2,028 | 2,028 |
Pension and Other Postretirem89
Pension and Other Postretirement Benefit Plans - Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Foreign Plan [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Benefit obligation, monetary impact of 1% increase in health care cost trend rate | $ 5 |
Benefit obligation, percentage impact of 1% increase in health care cost trend rate | 5.00% |
Service and interest costs, monetary impact of 1% increase in health care cost trend rate | $ 0 |
Service and interest costs, percentage impact of 1% increase in health care cost trend rate | 6.00% |
Benefit obligation, monetary impact of 1% decrease in health care cost trend rate | $ (5) |
Benefit obligation, percentage impact of 1% decrease in health care cost trend rate | (4.00%) |
Service and interest costs, monetary impact of 1% decrease in health care cost trend rate | $ 0 |
Service and interest costs, percentage impact of 1% decrease in health care cost trend rate | (5.00%) |
Domestic Plan [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Benefit obligation, monetary impact of 1% increase in health care cost trend rate | $ 3 |
Benefit obligation, percentage impact of 1% increase in health care cost trend rate | 5.00% |
Service and interest costs, monetary impact of 1% increase in health care cost trend rate | $ 0 |
Service and interest costs, percentage impact of 1% increase in health care cost trend rate | 7.00% |
Benefit obligation, monetary impact of 1% decrease in health care cost trend rate | $ (3) |
Benefit obligation, percentage impact of 1% decrease in health care cost trend rate | (4.00%) |
Service and interest costs, monetary impact of 1% decrease in health care cost trend rate | $ 0 |
Service and interest costs, percentage impact of 1% decrease in health care cost trend rate | (6.00%) |
Pension and Other Postretirem90
Pension and Other Postretirement Benefit Plans - Fair Value of Plan Assets Held by Pension Plans (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | $ 4,377 | $ 4,073 |
U.S. company equity securities [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 882 | 865 |
U.S. company equity securities [Member] | Level 1 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 882 | 865 |
U.S. company equity securities [Member] | Level 2 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Non-U.S. company equity securities [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 1,132 | 889 |
Non-U.S. company equity securities [Member] | Level 1 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 1,132 | 889 |
Non-U.S. company equity securities [Member] | Level 2 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Corporate and government debt securities [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 1,244 | 1,281 |
Corporate and government debt securities [Member] | Level 1 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 126 | 163 |
Corporate and government debt securities [Member] | Level 2 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 1,118 | 1,118 |
Asset-backed securities [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 275 | 71 |
Asset-backed securities [Member] | Level 1 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Asset-backed securities [Member] | Level 2 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 275 | 71 |
Cash and cash equivalents [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 169 | 330 |
Cash and cash equivalents [Member] | Level 1 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 166 | 330 |
Cash and cash equivalents [Member] | Level 2 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 3 | 0 |
Other plan assets and liabilities, net [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | (2) | 35 |
Other plan assets and liabilities, net [Member] | Level 1 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Other plan assets and liabilities, net [Member] | Level 2 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | (2) | 35 |
Subtotal before investments measured at NAV [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 3,700 | 3,471 |
Subtotal before investments measured at NAV [Member] | Level 1 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 2,306 | 2,247 |
Subtotal before investments measured at NAV [Member] | Level 2 [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 1,394 | 1,224 |
Investments measured at NAV [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | $ 677 | $ 602 |
Pension and Other Postretirem91
Pension and Other Postretirement Benefit Plans - Expected Benefit Payments and Future Contributions (Details) $ in Millions | Dec. 31, 2017USD ($) | |
Pension Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
2018 Expected benefit payments | $ 380 | [1] |
2019 Expected benefit payments | 372 | [1] |
2020 Expected benefit payments | 367 | [1] |
2021 Expected benefit payments | 363 | [1] |
2022 Expected benefit payments | 357 | [1] |
2023 - 2027 Expected benefit payments | 1,694 | [1] |
OPEB Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
2018 Expected benefit payments | 15 | |
2019 Expected benefit payments | 14 | |
2020 Expected benefit payments | 14 | |
2021 Expected benefit payments | 13 | |
2022 Expected benefit payments | 13 | |
2023 - 2027 Expected benefit payments | $ 60 | |
[1] | Benefit payments are expected be paid from the plans’ net assets. |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes by Taxing Jurisdiction (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (289) | $ (227) | $ (355) |
Foreign | 295 | 170 | 99 |
Income (loss) before income taxes | $ 6 | $ (57) | $ (256) |
Income Taxes - Income Tax (Prov
Income Taxes - Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. Federal and State: | |||
Current | $ 0 | $ 0 | $ 4 |
Deferred | 2 | (11) | 32 |
U.S. Federal and State, Total | 2 | (11) | 36 |
Foreign: | |||
Current | (4) | (5) | 0 |
Deferred | (82) | (3) | (35) |
Foreign, Total | (86) | (8) | (35) |
Total: | |||
Current | (4) | (5) | 4 |
Deferred | (80) | (14) | (3) |
Income tax benefit (provision) | $ (84) | $ (19) | $ 1 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income taxes | $ 6 | $ (57) | $ (256) | |
Income tax (provision) benefit: | ||||
Expected income tax (provision) benefit | (2) | 20 | 90 | |
Changes resulting from: | ||||
Valuation allowance | [1] | 247 | (99) | (109) |
Enactment of change in tax rate | [2] | (368) | 0 | 0 |
Adjustments for unrecognized tax benefits | [3] | 1 | 55 | 0 |
Foreign exchange | 6 | (9) | (20) | |
Research and development, and other tax incentives | 1 | 0 | 1 | |
State income taxes, net of federal income tax benefit | 10 | 6 | 12 | |
Foreign tax rate differences | 23 | 11 | 8 | |
Effect of change in tax rates | [4] | 0 | 0 | 18 |
Other, net | (2) | (3) | 1 | |
Income tax benefit (provision) | $ (84) | $ (19) | $ 1 | |
[1] | During 2017, we recorded a decrease in our valuation allowance of $359 million, due to the enactment of the TCJA, offset by an increase of $112 million, primarily related to our U.S. operations where we recognize a valuation allowance against virtually all of our net deferred income tax assets.During 2016 and 2015, we recorded a valuation allowance of $99 million and $109 million, respectively, mainly related to our U.S. operations where we recognized a full valuation allowance against our net deferred income tax assets. | |||
[2] | During 2017, we recorded decreases to our net deferred income tax assets of $356 million due to the enactment of the TCJA, and $12 million due to a lower foreign income tax rate | |||
[3] | During 2016, we recorded tax benefits of $55 million, almost all of which related to the release of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. | |||
[4] | During 2015, we recorded an income tax benefit of $18 million as a result of a change in tax rates on deferred income taxes, primarily due to an intercompany asset transfer in connection with an operating company realignment. |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Fixed assets | $ (4) | $ (44) |
Other liabilities | (23) | (21) |
Deferred income tax liabilities | (27) | (65) |
Fixed assets | 506 | 520 |
Pension and OPEB plans | 330 | 392 |
Operating loss carryforwards | 619 | 838 |
Capital loss carryforwards | 12 | 11 |
Undeducted research and development expenditures | 196 | 185 |
Tax credit carryforwards | 119 | 107 |
Other assets | 72 | 49 |
Deferred income tax assets | 1,854 | 2,102 |
Valuation allowance | (764) | (1,000) |
Net deferred income tax assets | 1,063 | 1,037 |
Amounts recognized in our Consolidated Balance Sheets consisted of: | ||
Deferred income tax assets | 1,076 | 1,039 |
Deferred income tax liabilities | (13) | (2) |
Net deferred income tax assets | $ 1,063 | $ 1,037 |
Income Taxes - Balance of Tax A
Income Taxes - Balance of Tax Attributes and Their Dates of Expiration (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Operating loss carryforwards | $ 619 | $ 838 | |
Capital loss carryforwards | 12 | 11 | |
Undeducted research and development expenditures | 196 | 185 | |
Tax credit carryforwards | 119 | $ 107 | |
U.S. Federal [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Operating loss carryforwards | [1] | 466 | |
U.S. State [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Operating loss carryforwards | [1] | 95 | |
Tax credit carryforwards | [1] | 23 | |
Canada Federal and Provincial (Excluding Quebec) [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Operating loss carryforwards | 18 | ||
Undeducted research and development expenditures | 116 | ||
Quebec [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Undeducted research and development expenditures | 80 | ||
Other [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Operating loss carryforwards | 40 | ||
Canadian [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Capital loss carryforwards | 12 | ||
Research Tax Credit Carryforward [Member] | Canadian [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Tax credit carryforwards | $ 96 | ||
[1] | As of December 31, 2017, we had a valuation allowance against virtually all of our U.S. operations net deferred income tax assets. |
Income Taxes - Balance of Tax97
Income Taxes - Balance of Tax Attributes and Their Dates of Expiration (Parenthetical) (Details) $ in Millions | Dec. 31, 2017USD ($) |
U.S. Federal [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | $ 2,218 |
U.S. State [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | 1,868 |
Canada Federal and Provincial (Excluding Quebec) [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | 73 |
Research Tax Credit Carryforward [Member] | Canada Federal and Provincial (Excluding Quebec) [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Tax credit carryforwards | 694 |
Research Tax Credit Carryforward [Member] | Quebec [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Tax credit carryforwards | 837 |
Capital Loss Carryforward [Member] | Canadian [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Tax credit carryforwards | $ 43 |
Income Taxes - Reconciliation98
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Reconciliation of Unrecognized Tax Benefits | |||
Beginning of year | $ 44 | $ 97 | |
Increase (decrease) in unrecognized tax benefits resulting from: [Roll Forward] | |||
Enactment of change in tax rate | [1] | (15) | 0 |
Positions taken in the current period | 0 | 1 | |
Expirations of statute limitations | [2] | 0 | (55) |
Settlements with taxing authorities | (1) | (1) | |
Change in foreign exchange rate | 0 | 2 | |
End of year | $ 28 | $ 44 | |
[1] | During 2017, previously unrecognized tax benefits decreased by $15 million due to the enactment of the TCJA. | ||
[2] | During 2016, we released $55 million of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2017 | ||
Income Tax Disclosure [Abstract] | |||||
Change in U.S. deferred income tax assets due to tax reform | $ 356 | ||||
Change in valuation allowance due to tax reform | $ 359 | ||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | ||
Other change in valuation allowance | $ 112 | ||||
Increase (decrease) in valuation allowance | [1] | (247) | $ 99 | $ 109 | |
Decrease in deferred income tax assets due to change in foreign income tax rate | 12 | ||||
Unrecognized tax benefits recognized - expirations of statute limitations | [2] | 0 | 55 | ||
Effect of change in tax rates | [3] | 0 | 0 | $ 18 | |
New Accounting Pronouncement, Early Adoption [Line Items] | |||||
Other assets | (165) | (164) | |||
Deferred income tax assets | 1,076 | 1,039 | |||
Deficit | 1,294 | 1,207 | |||
Unrecognized tax benefits decrease due to the reduction of the U.S. federal statutory income tax rate | [4] | 15 | $ 0 | ||
Unrecognized tax benefits that would impact the effective tax rate | $ 2 | ||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||
Other assets | $ 35 | ||||
Deferred income tax assets | 32 | ||||
Deficit | $ 3 | ||||
[1] | During 2017, we recorded a decrease in our valuation allowance of $359 million, due to the enactment of the TCJA, offset by an increase of $112 million, primarily related to our U.S. operations where we recognize a valuation allowance against virtually all of our net deferred income tax assets.During 2016 and 2015, we recorded a valuation allowance of $99 million and $109 million, respectively, mainly related to our U.S. operations where we recognized a full valuation allowance against our net deferred income tax assets. | ||||
[2] | During 2016, we released $55 million of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. | ||||
[3] | During 2015, we recorded an income tax benefit of $18 million as a result of a change in tax rates on deferred income taxes, primarily due to an intercompany asset transfer in connection with an operating company realignment. | ||||
[4] | During 2017, previously unrecognized tax benefits decreased by $15 million due to the enactment of the TCJA. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) CAD in Millions, $ in Millions | Oct. 30, 2014USD ($) | Oct. 30, 2014CAD | Dec. 31, 2017USD ($)site | Dec. 31, 2017CAD | Jan. 16, 2018 | Jan. 03, 2018 | Dec. 31, 2017CADsite | Nov. 02, 2017 | Jun. 30, 2017 | Apr. 28, 2017 | Dec. 31, 2016USD ($) | Oct. 15, 2015 | Aug. 03, 2015 | Jul. 31, 2012 |
Loss Contingencies [Line Items] | ||||||||||||||
Preliminary countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market | 12.82% | |||||||||||||
Final determination countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market | 14.70% | |||||||||||||
Accumulated countervailing duty cash deposits made on softwood lumber exports | $ 17 | |||||||||||||
Preliminary anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market | 4.59% | |||||||||||||
Final determination anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market | 3.20% | |||||||||||||
Accumulated anti-dumping cash deposits made on softwood lumber exports | $ 9 | |||||||||||||
Countervailing duty rate on supercalendered paper exports | 17.87% | 17.87% | 17.87% | 2.04% | ||||||||||
Countervailing duty rate on supercalendered paper exports, portion considered punitive application | 17.10% | |||||||||||||
Accumulated countervailing duty cash deposits on supercalendered paper exports | $ 49 | |||||||||||||
Maximum deficit from partial wind-up of pension plans to be funded | $ 120 | CAD 150 | ||||||||||||
Environmental Remediation Obligations [Abstract] | ||||||||||||||
Number of hazardous waste sites for which we may be a 'potentially responsible party' | site | 4 | 4 | ||||||||||||
Environmental liabilities | $ 8 | $ 8 | ||||||||||||
Asset retirement obligations | 24 | $ 23 | ||||||||||||
Fibrek [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Percentage of outstanding shares acquired | 25.40% | |||||||||||||
Amount paid, contingent consideration, business combination | 0 | |||||||||||||
Amount accrued to be contingently distributed | 11 | CAD 14 | ||||||||||||
Softwood Lumber Duties Investigations [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Contingent loss recorded | 0 | |||||||||||||
Supercalendered Paper Countervailing Duty Investigation [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Contingent loss recorded | 0 | |||||||||||||
Conditional Incentive Noncompliance [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Request of repayment of conditional incentive | $ 18 | CAD 23 | ||||||||||||
Maximum [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Yearly countervailing duty cash deposits on imports of certain Canadian softwood lumber imported to the U.S. market | 65 | |||||||||||||
Yearly anti-dumping cash deposits on imports of certain Canadian softwood lumber imported to the U.S. market | 15 | |||||||||||||
Yearly countervailing duty cash deposits made on supercalendered paper exports | 25 | |||||||||||||
Jedson Case Initial [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Complaint damages sought, value | 10 | |||||||||||||
Jedson Case Amendment [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Complaint damages sought, value | 20 | |||||||||||||
Jedson Case Subcontractor [Member] | Maximum [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Complaint damages sought, value | $ 1 | |||||||||||||
Subsequent Event [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Preliminary countervailing duty deposit rate on U.S. imports of uncoated groundwood paper produced at Canadian mills | 4.42% | |||||||||||||
Preliminary determination of countervailable subsidies benefiting the Canadian production of supercalendered paper exported to the U.S. | 1.79% |
Share Capital (Details)
Share Capital (Details) - USD ($) | May 28, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 22, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares authorized | 190,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Share repurchase program, aggregate purchase price, increase | $ 50,000,000 | ||||
Share repurchase program, aggregate purchase price | $ 100,000,000 | ||||
Share repurchase program, shares, repurchased | 0 | 0 | 5,500,000 | ||
Share repurchase program, cost, repurchased | $ 59,000,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 24,000,000 | ||||
Common stock, dividends declared | $ 0 | $ 0 | $ 0 | ||
Common stock, dividends paid | $ 0 | $ 0 | $ 0 | ||
Preferred stock, shares authorized | 10,000,000 | ||||
Preferred stock, par value | $ 0.001 | ||||
Preferred stock, shares issued | 0 | 0 | |||
Preferred stock, shares outstanding | 0 | 0 | |||
Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for issuance as stock incentive awards | 9,020,960 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance as stock incentive awards | 9,020,960 | |||
Shares available for issuance | 1,279,187 | |||
Share-based compensation expense | $ 18 | $ 11 | $ 12 | |
Tax benefit from share-based compensation expense | 0 | $ 0 | $ 0 | |
Unrecognized compensation cost related to equity awards | $ 10 | |||
Remaining requisite service period for equity awards to be recognized | 3 years | |||
Incentive Plan [Member] | Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period stock options become exercisable | 4 years | |||
Stock options granted | 0 | 0 | 0 | |
Total intrinsic value - stock options exercised | $ 1 | |||
Incentive Plan [Member] | RSUs and DSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock received per stock unit converted | 1 | |||
Stock units outstanding | 1,981,422 | [1] | 2,554,639 | |
Weighted-average grant-date fair value of awards granted | $ 7.34 | $ 3.97 | $ 7.94 | |
Total fair value - stock units vested | $ 8 | $ 3 | $ 3 | |
Incentive Plan [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period stock options become exercisable | 40 months | |||
Number of shares of common stock received per stock unit converted | 1 | |||
Stock units outstanding | 2,591,396 | [2] | 2,345,420 | |
Weighted-average grant-date fair value of awards granted | $ 8.63 | $ 3.95 | $ 7.54 | |
Deferred Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1 | $ 0 | $ 0 | |
Equity-based awards issuable as a percentage of director cash fees surrendered | 110.00% | |||
Premium incentive in the form of additional equity-based awards for cash fees surrendered | 10.00% | |||
Deferred Compensation Plan [Member] | RSUs and DSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units outstanding | 183,046 | 127,521 | ||
Total fair value - stock units vested | $ 0 | $ 0 | $ 0 | |
Number of common shares upon which value of cash payments on conversion of stock units is derived | 1 | |||
Director [Member] | Incentive Plan [Member] | RSUs and DSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period stock options become exercisable | 1 year | |||
Shares granted to directors that vested but were not settled in period | 284,688 | |||
Employees [Member] | Incentive Plan [Member] | RSUs and DSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period stock options become exercisable | 4 years | |||
Maximum [Member] | Incentive Plan [Member] | Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period from the grant date for stock options | 10 years | |||
Maximum [Member] | Deferred Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Director cash fees eligible to be surrendered for equity-based awards | 100.00% | |||
Maximum [Member] | Deferred Compensation Plan [Member] | RSUs and DSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period stock options become exercisable | 3 years | |||
Settlement period for awards once vested | 3 years | |||
Maximum [Member] | Director [Member] | Incentive Plan [Member] | RSUs and DSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Settlement period for awards once vested | 3 years | |||
Minimum [Member] | Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Retirement eligibility period | 6 months | |||
Minimum [Member] | Deferred Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Director cash fees eligible to be surrendered for equity-based awards | 50.00% | |||
Liability-based Awards [Member] | Incentive Plan [Member] | RSUs and DSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units outstanding | 17,161 | |||
Liability-based Awards [Member] | Incentive Plan [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units outstanding | 387,294 | |||
[1] | Includes 17,161 liability-based awards. | |||
[2] | Includes 387,294 liability-based awards. |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Activity (Details) - Stock options [Member] - Incentive Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options Outstanding [Roll Forward] | ||
Outstanding - beginning of year | 1,415,971 | |
Forfeited | (2,774) | |
Expired | (108,656) | |
Outstanding - end of year | 1,304,541 | 1,415,971 |
Exercisable as of December 31, 2017 | 1,304,541 | |
Weighted-Average Exercise Price of Stock Options Outstanding [Roll Forward] | ||
Outstanding - beginning of year | $ 15.77 | |
Forfeited | 15.66 | |
Expired | 14.09 | |
Outstanding - end of year | 15.90 | $ 15.77 |
Exercisable as of December 31, 2017 | $ 15.90 | |
Stock Options, Additional Disclosures [Abstract] | ||
Weighted average contractual life - stock options outstanding | 4 years 9 months | 5 years 10 months |
Weighted average contractual life - stock options exercisable | 4 years 9 months |
Share-Based Compensation - RSU
Share-Based Compensation - RSU and DSU Activity (Details) - Incentive Plan [Member] - RSUs and DSUs [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Nonvested Units Activity [Roll Forward] | ||||
Outstanding - beginning of year | 2,554,639 | |||
Granted | 434,022 | |||
Vested | (909,575) | |||
Forfeited | (97,664) | |||
Outstanding - end of year | 1,981,422 | [1] | 2,554,639 | |
Weighted-Average Fair Value at Grant Date of Stock Units Outstanding [Roll Forward] | ||||
Outstanding - beginning of year | $ 6.20 | |||
Granted | 7.34 | $ 3.97 | $ 7.94 | |
Vested | 7.36 | |||
Forfeited | 5.28 | |||
Outstanding - end of year | $ 5.96 | [1] | $ 6.20 | |
[1] | Includes 17,161 liability-based awards. |
Share-Based Compensation - PSU
Share-Based Compensation - PSU Activity (Details) - Incentive Plan [Member] - Performance Shares [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Stock Units Outstanding [Roll Forward] | ||||
Outstanding - beginning of year | 2,345,420 | |||
Granted | 295,455 | |||
Forfeited | (49,479) | |||
Outstanding - end of year | 2,591,396 | [1] | 2,345,420 | |
Weighted-Average Fair Value at Grant Date of Stock Units Outstanding [Roll Forward] | ||||
Outstanding - beginning of year | $ 6.71 | |||
Granted | 8.63 | $ 3.95 | $ 7.54 | |
Forfeited | 5.67 | |||
Outstanding - end of year | $ 6.94 | [1] | $ 6.71 | |
[1] | Includes 387,294 liability-based awards. |
Operating Leases and Purchas106
Operating Leases and Purchase Obligations - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease expense | $ 8 | $ 9 | $ 8 |
Purchase obligations - energy purchase obligations | $ 209 |
Operating Leases and Purchas107
Operating Leases and Purchase Obligations - Schedule of Future Minimum Rental Payments for Operating Leases and Commitments for Purchase Obligations (Details) $ in Millions | Dec. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase Obligations, 2018 | $ 81 | [1] |
Purchase Obligations, 2019 | 54 | [1] |
Purchase Obligations, 2020 | 54 | [1] |
Purchase Obligations, 2021 | 45 | [1] |
Purchase Obligations, 2022 | 4 | [1] |
Purchase Obligations, Thereafter | 30 | [1] |
Purchase Obligations, Total | 268 | [1] |
Operating Leases, 2018 | 7 | |
Operating Leases, 2019 | 6 | |
Operating Leases, 2020 | 6 | |
Operating Leases, 2021 | 5 | |
Operating Leases, 2022 | 3 | |
Operating Leases, Thereafter | 8 | |
Operating Leases, Total | $ 35 | |
[1] | Includes energy purchase obligations of $209 million through 2022 for certain of our pulp and paper mills. |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | $ 898 | $ 885 | $ 858 | $ 872 | $ 889 | $ 888 | $ 891 | $ 877 | $ 3,513 | $ 3,545 | $ 3,645 | |
Depreciation and amortization | 204 | 206 | 237 | |||||||||
Operating income (loss) | $ 54 | $ 48 | $ (47) | $ (6) | $ (18) | $ 10 | $ (18) | $ 0 | 49 | (26) | (219) | |
Capital expenditures | 164 | 249 | 185 | |||||||||
Operating segments [Member] | Market Pulp [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [1] | 911 | 836 | 889 | ||||||||
Depreciation and amortization | [1] | 31 | 37 | 53 | ||||||||
Operating income (loss) | [1] | 79 | 37 | 71 | ||||||||
Capital expenditures | [1] | 12 | 20 | 60 | ||||||||
Operating segments [Member] | Tissue [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [2] | 81 | 89 | 11 | ||||||||
Depreciation and amortization | [2] | 5 | 5 | 1 | ||||||||
Operating income (loss) | [2] | (6) | (10) | (1) | ||||||||
Capital expenditures | [2] | 101 | 156 | 41 | ||||||||
Operating segments [Member] | Wood Products [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [3] | 797 | 596 | 536 | ||||||||
Depreciation and amortization | [3] | 33 | 31 | 37 | ||||||||
Operating income (loss) | [3] | 186 | 69 | 2 | ||||||||
Capital expenditures | [3] | 9 | 23 | 43 | ||||||||
Operating segments [Member] | Newsprint [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 842 | 1,009 | 1,105 | |||||||||
Depreciation and amortization | 66 | 74 | 64 | |||||||||
Operating income (loss) | (23) | (16) | (25) | |||||||||
Capital expenditures | 6 | 2 | 10 | |||||||||
Operating segments [Member] | Specialty Papers [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 882 | 1,015 | 1,104 | |||||||||
Depreciation and amortization | 45 | 45 | 71 | |||||||||
Operating income (loss) | (9) | 19 | 23 | |||||||||
Capital expenditures | 20 | 23 | 13 | |||||||||
Operating segments [Member] | Segment Total [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 3,513 | 3,545 | 3,645 | |||||||||
Depreciation and amortization | 180 | 192 | 226 | |||||||||
Operating income (loss) | 227 | 99 | 70 | |||||||||
Capital expenditures | 148 | 224 | 167 | |||||||||
Corporate, non-segment [Member] | Corporate and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 0 | 0 | 0 | |||||||||
Depreciation and amortization | 24 | 14 | 11 | |||||||||
Operating income (loss) | (178) | (125) | (289) | |||||||||
Capital expenditures | $ 16 | $ 25 | $ 18 | |||||||||
[1] | Inter-segment sales of $36 million, $33 million and $20 million, which are transacted at cost, were excluded from market pulp sales for the years ended December 31, 2017, 2016 and 2015, respectively. | |||||||||||
[2] | Tissue capital expenditures consisted almost entirely of expenditures for the tissue manufacturing and converting facility in Calhoun. | |||||||||||
[3] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $20 million, $17 million and $20 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Segment Information - Schedu109
Segment Information - Schedule of Segment Reporting Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | $ 898 | $ 885 | $ 858 | $ 872 | $ 889 | $ 888 | $ 891 | $ 877 | $ 3,513 | $ 3,545 | $ 3,645 | |
Market Pulp [Member] | Intersegment Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 36 | 33 | 20 | |||||||||
Market Pulp [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [1] | 911 | 836 | 889 | ||||||||
Wood Products [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [2] | 797 | 596 | 536 | ||||||||
Sales to joint-ventures | $ 20 | $ 17 | $ 20 | |||||||||
[1] | Inter-segment sales of $36 million, $33 million and $20 million, which are transacted at cost, were excluded from market pulp sales for the years ended December 31, 2017, 2016 and 2015, respectively. | |||||||||||
[2] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $20 million, $17 million and $20 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Segment Information - Summary o
Segment Information - Summary of Sales by Country (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 898 | $ 885 | $ 858 | $ 872 | $ 889 | $ 888 | $ 891 | $ 877 | $ 3,513 | $ 3,545 | $ 3,645 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,387 | 2,464 | 2,421 | ||||||||
Foreign countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 1,126 | 1,081 | 1,224 | ||||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 517 | 428 | 476 | ||||||||
Mexico [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 126 | 126 | 150 | ||||||||
Other countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 483 | $ 527 | $ 598 |
Segment Information - Summar111
Segment Information - Summary of Sales by Country (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | |||
Percentage (of consolidated sales) used to determine a significant portion of sales per individual country (in the other countries group) | 2.00% | 2.00% | 2.00% |
Segment Information - Summar112
Segment Information - Summary of Long-Lived Assets, by Country (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,933 | $ 2,062 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 790 | 795 |
Foreign countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,143 | 1,267 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,143 | 1,259 |
South Korea [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 0 | $ 8 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage owned of material U.S. subsidiaries | 100.00% |
Condensed Consolidating Fina114
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations and Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | $ 898 | $ 885 | $ 858 | $ 872 | $ 889 | $ 888 | $ 891 | $ 877 | $ 3,513 | $ 3,545 | $ 3,645 |
Costs and expenses: | |||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 2,574 | 2,716 | 2,826 | ||||||||
Depreciation and amortization | 204 | 206 | 237 | ||||||||
Distribution costs | 442 | 440 | 460 | ||||||||
Selling, general and administrative expenses | 172 | 149 | 160 | ||||||||
Closure costs, impairment and other related charges | 87 | 62 | 181 | ||||||||
Net gain on disposition of assets | (15) | (2) | 0 | ||||||||
Operating income (loss) | 54 | 48 | (47) | (6) | (18) | 10 | (18) | 0 | 49 | (26) | (219) |
Interest expense | (49) | (38) | (41) | ||||||||
Other income (expense), net | 6 | 7 | 4 | ||||||||
Equity in (loss) income of subsidiaries | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes | 6 | (57) | (256) | ||||||||
Income tax benefit (provision) | (84) | (19) | 1 | ||||||||
Net income (loss) including noncontrolling interests | (78) | (76) | (255) | ||||||||
Net (income) loss attributable to noncontrolling interests | (6) | (5) | (2) | ||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | $ 13 | $ 24 | $ (74) | $ (47) | $ (45) | $ 14 | $ (42) | $ (8) | (84) | (81) | (257) |
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (109) | (249) | (126) | ||||||||
Parent [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Distribution costs | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 30 | 20 | 19 | ||||||||
Closure costs, impairment and other related charges | 0 | 0 | 0 | ||||||||
Net gain on disposition of assets | 0 | 0 | |||||||||
Operating income (loss) | (30) | (20) | (19) | ||||||||
Interest expense | (95) | (80) | (75) | ||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||
Equity in (loss) income of subsidiaries | 41 | 19 | (163) | ||||||||
Income (loss) before income taxes | (84) | (81) | (257) | ||||||||
Income tax benefit (provision) | 0 | 0 | 0 | ||||||||
Net income (loss) including noncontrolling interests | (84) | (81) | (257) | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | (84) | (81) | (257) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (109) | (249) | (126) | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 2,849 | 2,907 | 2,975 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 2,702 | 2,745 | 2,780 | ||||||||
Depreciation and amortization | 74 | 78 | 93 | ||||||||
Distribution costs | 159 | 168 | 168 | ||||||||
Selling, general and administrative expenses | 69 | 61 | 55 | ||||||||
Closure costs, impairment and other related charges | 76 | 38 | 176 | ||||||||
Net gain on disposition of assets | 0 | 0 | |||||||||
Operating income (loss) | (231) | (183) | (297) | ||||||||
Interest expense | (9) | 0 | 0 | ||||||||
Other income (expense), net | 76 | 57 | 37 | ||||||||
Equity in (loss) income of subsidiaries | 43 | 24 | 20 | ||||||||
Income (loss) before income taxes | (121) | (102) | (240) | ||||||||
Income tax benefit (provision) | 2 | (11) | 36 | ||||||||
Net income (loss) including noncontrolling interests | (119) | (113) | (204) | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | (119) | (113) | (204) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (135) | (197) | (169) | ||||||||
Non-guarantor Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 2,264 | 2,145 | 2,223 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 1,467 | 1,471 | 1,601 | ||||||||
Depreciation and amortization | 130 | 128 | 144 | ||||||||
Distribution costs | 291 | 273 | 293 | ||||||||
Selling, general and administrative expenses | 73 | 68 | 86 | ||||||||
Closure costs, impairment and other related charges | 11 | 24 | 5 | ||||||||
Net gain on disposition of assets | (15) | (2) | |||||||||
Operating income (loss) | 307 | 183 | 94 | ||||||||
Interest expense | (13) | (10) | (12) | ||||||||
Other income (expense), net | (2) | 2 | 13 | ||||||||
Equity in (loss) income of subsidiaries | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes | 292 | 175 | 95 | ||||||||
Income tax benefit (provision) | (85) | (10) | (34) | ||||||||
Net income (loss) including noncontrolling interests | 207 | 165 | 61 | ||||||||
Net (income) loss attributable to noncontrolling interests | (6) | (5) | (2) | ||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | 201 | 160 | 59 | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | 192 | 73 | 155 | ||||||||
Consolidating Adjustments [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | (1,600) | (1,507) | (1,553) | ||||||||
Costs and expenses: | |||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | (1,595) | (1,500) | (1,555) | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Distribution costs | (8) | (1) | (1) | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Closure costs, impairment and other related charges | 0 | 0 | 0 | ||||||||
Net gain on disposition of assets | 0 | 0 | |||||||||
Operating income (loss) | 3 | (6) | 3 | ||||||||
Interest expense | 68 | 52 | 46 | ||||||||
Other income (expense), net | (68) | (52) | (46) | ||||||||
Equity in (loss) income of subsidiaries | (84) | (43) | 143 | ||||||||
Income (loss) before income taxes | (81) | (49) | 146 | ||||||||
Income tax benefit (provision) | (1) | 2 | (1) | ||||||||
Net income (loss) including noncontrolling interests | (82) | (47) | 145 | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | (82) | (47) | 145 | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ (57) | $ 124 | $ 14 |
Condensed Consolidating Fina115
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 6 | $ 35 | $ 58 | $ 337 |
Accounts receivable, net | 479 | 441 | ||
Accounts receivable from affiliates | 0 | 0 | ||
Inventories, net | 526 | 570 | ||
Note, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 33 | 35 | ||
Total current assets | 1,044 | 1,081 | ||
Fixed assets, net | 1,716 | 1,842 | ||
Amortizable intangible assets, net | 65 | 70 | ||
Goodwill | 81 | 81 | ||
Deferred income tax assets | 1,076 | 1,039 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 165 | 164 | ||
Total assets | 4,147 | 4,277 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 420 | 466 | ||
Current portion of long-term debt | 1 | 1 | ||
Accounts payable to affiliates | 0 | 0 | ||
Note, advance and interest payable to subsidiaries | 0 | 0 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 421 | 467 | ||
Long-term debt, net of current portion | 788 | 761 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 1,257 | 1,281 | ||
Deferred income tax liabilities | 13 | 2 | ||
Other liabilities | 68 | 55 | ||
Total liabilities | 2,547 | 2,566 | ||
Total equity | 1,600 | 1,711 | 1,945 | 2,117 |
Total liabilities and equity | 4,147 | 4,277 | ||
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Note, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred income tax assets | 0 | 0 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 3,939 | 3,918 | ||
Other assets | 0 | 0 | ||
Total assets | 3,939 | 3,918 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 4 | 5 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | 536 | 479 | ||
Note, advance and interest payable to subsidiaries | 538 | 373 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 1,078 | 857 | ||
Long-term debt, net of current portion | 592 | 590 | ||
Notes payable to subsidiaries | 330 | 443 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 5 | 0 | ||
Total liabilities | 2,005 | 1,890 | ||
Total equity | 1,934 | 2,028 | ||
Total liabilities and equity | 3,939 | 3,918 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 3 | 2 | 13 | 257 |
Accounts receivable, net | 319 | 283 | ||
Accounts receivable from affiliates | 535 | 479 | ||
Inventories, net | 243 | 259 | ||
Note, advance and interest receivable from parent | 538 | 373 | ||
Notes and interest receivable from affiliates | 32 | 54 | ||
Other current assets | 16 | 16 | ||
Total current assets | 1,686 | 1,466 | ||
Fixed assets, net | 692 | 733 | ||
Amortizable intangible assets, net | 13 | 14 | ||
Goodwill | 81 | 81 | ||
Deferred income tax assets | 1 | 0 | ||
Notes receivable from parent | 330 | 443 | ||
Notes receivable from affiliates | 116 | 109 | ||
Investments in consolidated subsidiaries and affiliates | 2,111 | 2,068 | ||
Other assets | 98 | 62 | ||
Total assets | 5,128 | 4,976 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 171 | 222 | ||
Current portion of long-term debt | 1 | 1 | ||
Accounts payable to affiliates | 728 | 395 | ||
Note, advance and interest payable to subsidiaries | 0 | 0 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 900 | 618 | ||
Long-term debt, net of current portion | 196 | 171 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 378 | 397 | ||
Deferred income tax liabilities | 0 | 1 | ||
Other liabilities | 24 | 24 | ||
Total liabilities | 1,498 | 1,211 | ||
Total equity | 3,630 | 3,765 | ||
Total liabilities and equity | 5,128 | 4,976 | ||
Non-guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 3 | 33 | 45 | 80 |
Accounts receivable, net | 160 | 158 | ||
Accounts receivable from affiliates | 729 | 395 | ||
Inventories, net | 292 | 323 | ||
Note, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 17 | 19 | ||
Total current assets | 1,201 | 928 | ||
Fixed assets, net | 1,024 | 1,109 | ||
Amortizable intangible assets, net | 52 | 56 | ||
Goodwill | 0 | 0 | ||
Deferred income tax assets | 1,073 | 1,036 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 67 | 102 | ||
Total assets | 3,417 | 3,231 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 245 | 239 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | 0 | 0 | ||
Note, advance and interest payable to subsidiaries | 0 | 0 | ||
Notes and interest payable to affiliates | 32 | 54 | ||
Total current liabilities | 277 | 293 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 116 | 109 | ||
Pension and other postretirement benefit obligations | 879 | 884 | ||
Deferred income tax liabilities | 13 | 1 | ||
Other liabilities | 39 | 31 | ||
Total liabilities | 1,324 | 1,318 | ||
Total equity | 2,093 | 1,913 | ||
Total liabilities and equity | 3,417 | 3,231 | ||
Consolidating Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | (1,264) | (874) | ||
Inventories, net | (9) | (12) | ||
Note, advance and interest receivable from parent | (538) | (373) | ||
Notes and interest receivable from affiliates | (32) | (54) | ||
Other current assets | 0 | 0 | ||
Total current assets | (1,843) | (1,313) | ||
Fixed assets, net | 0 | 0 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred income tax assets | 2 | 3 | ||
Notes receivable from parent | (330) | (443) | ||
Notes receivable from affiliates | (116) | (109) | ||
Investments in consolidated subsidiaries and affiliates | (6,050) | (5,986) | ||
Other assets | 0 | 0 | ||
Total assets | (8,337) | (7,848) | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | (1,264) | (874) | ||
Note, advance and interest payable to subsidiaries | (538) | (373) | ||
Notes and interest payable to affiliates | (32) | (54) | ||
Total current liabilities | (1,834) | (1,301) | ||
Long-term debt, net of current portion | 0 | 0 | ||
Notes payable to subsidiaries | (330) | (443) | ||
Notes payable to affiliates | (116) | (109) | ||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (2,280) | (1,853) | ||
Total equity | (6,057) | (5,995) | ||
Total liabilities and equity | $ (8,337) | $ (7,848) |
Condensed Consolidating Fina116
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | $ 158 | $ 81 | $ 138 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (164) | (249) | (185) |
Acquisition of a sawmill in Senneterre (Quebec) | 0 | (6) | 0 |
Acquisition of Atlas Tissue, including cash overdraft acquired | 0 | 0 | (159) |
Disposition of assets | 21 | 5 | 0 |
(Increase) decrease in countervailing duty cash deposits on supercalendered paper | (22) | (23) | (4) |
(Increase) decrease in countervailing and anti-dumping duty cash deposits on softwood lumber | (26) | 0 | 0 |
(Increase) decrease in restricted cash, net | (3) | 0 | 0 |
Decrease (increase) in deposit requirements for letters of credit, net | 2 | 0 | (4) |
Investment in common stock of subsidiary | 0 | ||
Advance to parent | 0 | ||
(Increase) decrease in notes receivable from affiliates, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (192) | (273) | (352) |
Cash flows from financing activities: | |||
Net borrowings under revolving credit facilities | 19 | 125 | 0 |
Acquisition of noncontrolling interest in Donohue Malbaie Inc. | (15) | 0 | 0 |
Issuance of long-term debt | 0 | 46 | 0 |
Payments of debt | (1) | (1) | 0 |
Payments of financing and credit facility fees | 0 | (1) | (3) |
Purchases of treasury stock | 0 | 0 | (59) |
Issuance of common stock | 0 | ||
Advance to subsidiary | 0 | ||
Increase (decrease) in notes payable to affiliate, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 3 | 169 | (62) |
Effect of exchange rate changes on cash and cash equivalents | 2 | 0 | (3) |
Net increase (decrease) in cash and cash equivalents | (29) | (23) | (279) |
Cash and cash equivalents: | |||
Beginning of year | 35 | 58 | 337 |
End of year | 6 | 35 | 58 |
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | 0 | 0 | 0 |
Acquisition of a sawmill in Senneterre (Quebec) | 0 | ||
Acquisition of Atlas Tissue, including cash overdraft acquired | 0 | ||
Disposition of assets | 0 | 0 | |
(Increase) decrease in countervailing duty cash deposits on supercalendered paper | 0 | 0 | 0 |
(Increase) decrease in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | ||
(Increase) decrease in restricted cash, net | 0 | ||
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | |
Investment in common stock of subsidiary | 0 | ||
Advance to parent | 0 | ||
(Increase) decrease in notes receivable from affiliates, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Net borrowings under revolving credit facilities | 0 | 0 | |
Acquisition of noncontrolling interest in Donohue Malbaie Inc. | 0 | ||
Issuance of long-term debt | 0 | 0 | |
Payments of debt | 0 | 0 | |
Payments of financing and credit facility fees | 0 | 0 | 0 |
Purchases of treasury stock | (59) | ||
Issuance of common stock | 0 | ||
Advance to subsidiary | 59 | ||
Increase (decrease) in notes payable to affiliate, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents: | |||
Beginning of year | 0 | 0 | 0 |
End of year | 0 | 0 | 0 |
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 125 | 30 | 151 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (116) | (179) | (101) |
Acquisition of a sawmill in Senneterre (Quebec) | 0 | ||
Acquisition of Atlas Tissue, including cash overdraft acquired | (159) | ||
Disposition of assets | 0 | 0 | |
(Increase) decrease in countervailing duty cash deposits on supercalendered paper | (22) | (23) | (4) |
(Increase) decrease in countervailing and anti-dumping duty cash deposits on softwood lumber | (26) | ||
(Increase) decrease in restricted cash, net | 0 | ||
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | |
Investment in common stock of subsidiary | (234) | ||
Advance to parent | 59 | ||
(Increase) decrease in notes receivable from affiliates, net | 22 | (8) | 164 |
Net cash provided by (used in) investing activities | (142) | (210) | (393) |
Cash flows from financing activities: | |||
Net borrowings under revolving credit facilities | 19 | 125 | |
Acquisition of noncontrolling interest in Donohue Malbaie Inc. | 0 | ||
Issuance of long-term debt | 0 | 46 | |
Payments of debt | (1) | (1) | |
Payments of financing and credit facility fees | 0 | (1) | (2) |
Purchases of treasury stock | 0 | ||
Issuance of common stock | 0 | ||
Advance to subsidiary | 0 | ||
Increase (decrease) in notes payable to affiliate, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 18 | 169 | (2) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 1 | (11) | (244) |
Cash and cash equivalents: | |||
Beginning of year | 2 | 13 | 257 |
End of year | 3 | 2 | 13 |
Non-guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 33 | 51 | (13) |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (48) | (70) | (84) |
Acquisition of a sawmill in Senneterre (Quebec) | (6) | ||
Acquisition of Atlas Tissue, including cash overdraft acquired | 0 | ||
Disposition of assets | 21 | 5 | |
(Increase) decrease in countervailing duty cash deposits on supercalendered paper | 0 | 0 | 0 |
(Increase) decrease in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | ||
(Increase) decrease in restricted cash, net | (3) | ||
Decrease (increase) in deposit requirements for letters of credit, net | 2 | (4) | |
Investment in common stock of subsidiary | 0 | ||
Advance to parent | 0 | ||
(Increase) decrease in notes receivable from affiliates, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (28) | (71) | (88) |
Cash flows from financing activities: | |||
Net borrowings under revolving credit facilities | 0 | 0 | |
Acquisition of noncontrolling interest in Donohue Malbaie Inc. | (15) | ||
Issuance of long-term debt | 0 | 0 | |
Payments of debt | 0 | 0 | |
Payments of financing and credit facility fees | 0 | 0 | (1) |
Purchases of treasury stock | 0 | ||
Issuance of common stock | 234 | ||
Advance to subsidiary | 0 | ||
Increase (decrease) in notes payable to affiliate, net | (22) | 8 | (164) |
Net cash provided by (used in) financing activities | (37) | 8 | 69 |
Effect of exchange rate changes on cash and cash equivalents | 2 | 0 | (3) |
Net increase (decrease) in cash and cash equivalents | (30) | (12) | (35) |
Cash and cash equivalents: | |||
Beginning of year | 33 | 45 | 80 |
End of year | 3 | 33 | 45 |
Consolidating Adjustments [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | 0 | 0 | 0 |
Acquisition of a sawmill in Senneterre (Quebec) | 0 | ||
Acquisition of Atlas Tissue, including cash overdraft acquired | 0 | ||
Disposition of assets | 0 | 0 | |
(Increase) decrease in countervailing duty cash deposits on supercalendered paper | 0 | 0 | 0 |
(Increase) decrease in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | ||
(Increase) decrease in restricted cash, net | 0 | ||
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | |
Investment in common stock of subsidiary | 234 | ||
Advance to parent | (59) | ||
(Increase) decrease in notes receivable from affiliates, net | (22) | 8 | (164) |
Net cash provided by (used in) investing activities | (22) | 8 | 129 |
Cash flows from financing activities: | |||
Net borrowings under revolving credit facilities | 0 | 0 | |
Acquisition of noncontrolling interest in Donohue Malbaie Inc. | 0 | ||
Issuance of long-term debt | 0 | 0 | |
Payments of debt | 0 | 0 | |
Payments of financing and credit facility fees | 0 | 0 | 0 |
Purchases of treasury stock | 0 | ||
Issuance of common stock | (234) | ||
Advance to subsidiary | (59) | ||
Increase (decrease) in notes payable to affiliate, net | 22 | (8) | 164 |
Net cash provided by (used in) financing activities | 22 | (8) | (129) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents: | |||
Beginning of year | 0 | 0 | 0 |
End of year | $ 0 | $ 0 | $ 0 |
Quarterly Information - Schedul
Quarterly Information - Schedule of Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 898 | $ 885 | $ 858 | $ 872 | $ 889 | $ 888 | $ 891 | $ 877 | $ 3,513 | $ 3,545 | $ 3,645 |
Operating income (loss) | 54 | 48 | (47) | (6) | (18) | 10 | (18) | 0 | 49 | (26) | (219) |
Net income (loss) attributable to Resolute Forest Products Inc. | $ 13 | $ 24 | $ (74) | $ (47) | $ (45) | $ 14 | $ (42) | $ (8) | $ (84) | $ (81) | $ (257) |
Basic net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders | $ 0.14 | $ 0.27 | $ (0.82) | $ (0.52) | $ (0.50) | $ 0.16 | $ (0.47) | $ (0.09) | $ (0.93) | $ (0.90) | $ (2.78) |
Diluted net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders | $ 0.14 | $ 0.26 | $ (0.82) | $ (0.52) | $ (0.50) | $ 0.15 | $ (0.47) | $ (0.09) | $ (0.93) | $ (0.90) | $ (2.78) |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event (Details) - Subsequent Event [Member] $ in Millions | Jan. 16, 2018USD ($) |
Subsequent Event [Line Items] | |
Preliminary countervailing duty deposit rate on U.S. imports of uncoated groundwood paper produced at Canadian mills | 4.42% |
Duration of preliminary countervailing duty deposit rate on U.S. imports of Canadian uncoated groundwood | 4 months |
Estimated yearly countervailing duty cash deposits on U.S. imports of Canadian uncoated groundwood paper during initial four-month period | $ 6 |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Estimated yearly countervailing duty cash deposits on U.S. imports of Canadian uncoated groundwood paper | $ 20 |